March 30/2004
Japan Fair Trade Commission
The Fair Trade Commission investigated into companies that bid for the sewer pump installation work requested by the Tokyo Metropolitan Government based on the provisions of the Antimonopoly Act, and today issued recommendation to the 14 companies as they are in violation of the provisions of Section 3 of the Act (unreasonable restraint of trade) based on Section 48 (2) of the Act.
1. Concerned Party
Fourteen companies engaged in construction business to install pumps (hereinafter referred to as the “14 Companies”)
2. Description of Violation
With respect to the sewer pump installation work requested by the Sewerage and Sewage Bureau of the Tokyo Metropolitan Government through a general competitive bid, designated competitive bid through public offering, or designated competitive bid on a desired basis, the 14 Companies substantially restricted competition in the area of the work against the public interest by jointly deciding on which company would accept the order and working to have that company actually accept the order in a bid to prevent prices for orders from falling, starting April 1999 at the latest.
3. Summary of Measures to Eliminate the Violation
(1) The 14 Companies should confirm that they refrained from the acts described in 2 above.
(2) The 14 Companies should advise the Tokyo Metropolitan Government of the measures taken based on 3 (1) above and that they will refrain from any act similar to the acts described in 2 above.
(3) The 14 Companies should refrain from any act similar to the acts described in 2 above in the future.
(4) The 14 Companies should take necessary measures to provide training in the Antimonopoly Act to their marketing staff and to have their legal staff conduct periodical audits, and make the details of said measures known to their directors and employees without exception.
4. Deadline for accepting or rejecting the recommendation
April 9, 2004
(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.
