Six Toei line maintenance companies to be recognized as bid rigging; five companies to be ordered excluded, 500 million yen surcharge expected - successful bids, pre-determination for each route, FTC

On the 13th, interviews with related parties revealed that the Japan Fair Trade Commission has decided to certify that six construction companies, including Tokyo Stock Exchange Prime-listed Totetsu Kogyo (Shinagawa Ward, Tokyo), colluded in bids for track maintenance work for the Toei Subway and other railways, violating the Antimonopoly Act (unreasonable restraint of trade). Cease and desist orders and surcharge payment orders have been issued to five of the companies, with the total surcharge expected to be approximately 500 million yen.

Possible bid rigging in Toei subway construction? Transportation Bureau and six companies involved in receiving orders - Fair Trade Commission

In addition to Totetsu Kogyo, the five companies are Tsuboi Kogyo (Chuo Ward), Hayakawa Construction (Taito Ward), Nissin Kogyo (Kawasaki City), and JR Kyushu Group's Sanki Construction (Fukuoka City). Tokyu Orbital Industry Co., Ltd. (Kawasaki City) was also found to be in violation, but because it voluntarily reported the matter before the Fair Trade Commission investigated it, it appears that it will be able to avoid punishment due to the application of the surcharge reduction/exemption system.

According to people involved, the six companies had been bidding for track maintenance work such as rail replacement on the Toei Asakusa, Mita, Shinjuku, and Oedo subway lines, the Toden Arakawa Line, and the Nippori-Toneri Liner several years ago, and decided in advance who would receive the contract. Most of the bids were made by specific companies for each route.