March 11/2004
Japan Fair Trade Commission
The JFTC today issued a decision that 3 consultant companies, Maruei Research and design K.K. (hereunder Maruei), Nankai-Katsuma K.K. (hereunder Nankai) and K.K. Wakasuzu (hereunder Wakasuzu), pay surcharge regarding the bid-rigging on the specific measurement and design business called by Mie Prefecture, based on Section 54-2 (1) of the Antimonopoly Act.
1. Parties concerned and their total amount of surcharge
| Violator | Maruei | Nankai | Wakasuzu |
|---|---|---|---|
Surcharge |
44,570 | 63,560 | 76,190 |
2. Outline of decision
(1) Violation on surcharge (recommendation: 6 December 2002)
These 3 Companies are conspired to rig bids for let by the Department of Agriculture, Forestry, Commerce and Industry, of Agriculture, Forestry,Fisheries, Commerce and Industry, of Agriculture Policy, and of Construction of 7 regional bureaus of Mie Prefecture predetermining a winning bidder, concerning the measurement business (except aeronautic measurement business), construction business (except architecture business) and indemnity business. These conducts infringed Section 3 (unreasonable restriction of trading) of Antimonopoly Act.
(2) The basis for the computation of surcharge (surcharge payment order: 20 February 2003)
Maruei: The term of these conducts by Maruei is between 1June 1998 and 30 May 2001. The sales under this term are 506,161,950 Yen of 87 contracts before Small and Medium Enterprise Basic Law was amended and 473,573,100 Yen of 71 contracts after that.
Nankai: The term of these conducts by Maruei is between 1June 1998 and 30 May 2001. The sales under this term are 845,457,900 Yen of 130 contracts before Small and Medium Enterprise Basic Law was amended and 427,894,950 Yen of 78 contracts after that.
Wakasuzu: The term of these conducts by Maruei is between 1June 1998 and 30 May 2001. The sales under this term are 943,598,250 Yen of 112 contracts before Small and Medium Enterprise Basic Law was amended and 652,622,250 Yen of 89 contracts after that.
(3) Main issues of the examination
Main issues of the examination are as follows:
(a) Whether the bids in which the companies of grade B participated are objects of surcharge computation on Maruei,Nankai and Wakasuzu?
(b) The road traffic research on National Route 42 by Maruei is object of surcharge computation?
(c) The JFTC should subtract total sales surcharge computation on Maruei, Nankai and Wakasuzu from consumption tax?
(4) Judgments on these issues
(a) The hearing examiner judged that the bids in which the companies of grade B participated are objects of surcharge computation on every company.
(b) The hearing examiner judged that the road traffic research on National Route 42 by Maruei is object of surcharge computation.
(c) The hearing examiner judged that total sales on these bids called by Mie Prefecture include the consumption tax.
3. History
| measure | Maruei | Nankai | Wakasuzu |
|---|---|---|---|
| Decision to initiate hearings | 6 December 2002 | 6 December 2002 | 6 December 2002 |
| The first hearing | 20 February 2003 | 20 February 2003 | 20 February 2003 |
| Surcharge payment order | 8 April 2003 | 8 April 2003 | 8 April 2003 |
| The last hearing | 26 November 2003 | 28 October 2003 | 28 October 2003 |
| Service of the decision draft | 6 January 2003 | 6 January 2003 | 6 January 2003 |
| Objection to the decision draft | 19 January 2003 | None | None |
*Every announcement is tentative translation. Please refer to the original text written in Japanese.
