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JFTC issues recommendation to participants in bidding for sewerege facility works ordered by the City of Kitakyushu

October 22/2003
Japan Fair Trade Commission

The JFTC, following an investigation into participants in bidding for sewerage facility works ordered by the City of Kitakyushu, hereby issues the following recommendation based on Section 48 (2) of the Antimonopoly Act to 27 companies stating that they are in violation of Section 3 (unreasonable restraint of trade) of the Antimonopoly Act.

1. Parties to receive recommendation

27 companies conducting machinery and tool installation works in the City of Kitakyushu region (hereinafter referred to as “the 27 companies”)

2. Outline of violation

The 27 companies conspired to substantially restrict competition for installation works of sewerage facilities ordered by the City of Kitakyushu using designated competitive bidding contrary to the public interest by prearranging the project contractors and having them receive relevant orders. This was intended to prevent a decline in order prices,beginning from a period to commence no later than 1 April 1999, for said projects.

3. Outline of elimination measures

(1) The 27 companies shall confirm that they have stopped the activities mentioned in item 2 above.
(2)The 27 companies shall notify the City of Kitakyushu of the measures that they shall take based on item 3 (1) above as well as their pledge to not conduct actions similar to those mentioned in item 2 above in the future.
(3) The 27 companies shall not engage in activities similar to these described in item 2 above in the future.

4. Limitation of acceptance or rejection of this Recommendation

6 November 2003
(If the recommendation is accepted, a decision consisting of the same items contained in this recommendation shall be issued; if not, hearing procedures shall commence.)

*Every announcement is tentative translation. Please refer to the original text written in Japanese.

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