May 13/2004
Japan Fair Trade Commission
Based on the provisions of the Antimonopoly Act, the Fair Trade Commission examined participants in bids for business such as surveying and civil engineering consultancy ordered by Yamagata Prefecture, and, today, issued a recommendation as follows to 22 companies to the effect that they are in violation of Section 3 of the Antimonopoly Act (prohibition of unreasonable restraint of trade).
1. Parties concerned
Twenty-two companies with their head office,sales office or main business premises in the area of jurisdiction of Okitama general municipal office, Yamagata Prefecture (hereinafter “Okitama general municipal office”) and are engaged in surveying, civil engineering consultancy business, compensation consultancy business.
2. Summary of violation
With respect to surveying business, civil engineering consultancy business, compensation consultancy business and other business ordered by Yamagata Prefecture at the construction department of the Okitama general municipal office through a designated competitive bid and comparison of estimates, designating only parties with their head office, sales office or main business premises in the area of jurisdiction of the Okitama general municipal office, the 22 companies substatially restrained competition in the area of the work,against the public interest, by jointly deciding on which company would win the contract and enabling that company to win the contract in a bid to prevent the contract price from falling, starting April 1, 2000 at the latest.
(NOTE) “Other business” is business consisting of traffic survey, filing of materials, etc. associated with civil engineering business.
3. Summary of elimination measures
(1) The 22 companies should confirm that they have ceased the acts described in 2 above.
(2) Twenty-one out of the 22 companies excluding Asada in Osaka City (hereinafter “the 21 companies”) should inform Yamagata Prefecture of the measures taken under 3(1) above and that they will refrain from any act similar to the acts described in 2 above in the future. Asada in Osaka City should inform Yamagata Prefecture of the measures taken under 3(1) above and should also inform Asada in Yonezawa
(3) The 21 persons should refrain from any acts similar to the acts described in 2 above in the future.
(4) Asada located in Osaka City should ensure that Asada located in Yonezawa City refrains from any acts similar to the acts described in 2 above in the future.
4. Limitation of acceptance or rejection of this Recommendation
May 24, 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.
