TOKYO –
Japan’s Fair Trade Commission plans to issue cease-and-desist orders against six construction companies, including firms affiliated with Japan Railways, over repeated bid-rigging in maintenance contracts for Tokyo’s Toei subway network and other railway lines, with five companies facing surcharges totaling approximately 500 million yen.
The six companies expected to be found in violation of the Antimonopoly Act include Tokyo-based Totetsu Kogyo and Tsuboi Corporation, as well as Sanki Construction, headquartered in Fukuoka Prefecture.
According to sources familiar with the investigation, the companies repeatedly engaged in bid-rigging by deciding in advance which contractor would win tenders for railway maintenance work commissioned by the Tokyo Metropolitan Bureau of Transportation.
The alleged arrangements involved maintenance contracts covering six railway lines, including routes operated by the Toei subway system. The companies are suspected of coordinating their bids to predetermine the successful bidder rather than competing independently for the contracts.
The Fair Trade Commission has also been investigating the Tokyo Metropolitan Bureau of Transportation, which awarded the contracts, as part of its examination of the procurement process.
The commission intends to order five of the contractors to pay administrative surcharges totaling approximately 500 million yen, while issuing cease-and-desist orders requiring measures to prevent similar violations from occurring again.
The planned enforcement action highlights concerns over competition in publicly funded railway maintenance contracts, where repeated coordination among contractors can undermine the fairness of bidding procedures.
Source: TBS
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