BackFirst case of bid-rigging in large-scale condominium renovations; JFTC imposes penalties on 40 companies and orders them to pay a surcharge of approximately 1.6 billion yen

First case of bid-rigging in large-scale condominium renovations; JFTC imposes penalties on 40 companies and orders them to pay a surcharge of approximately 1.6 billion yen

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時事通信10 hours agoBusiness1 min readJapan

First case of bid-rigging in large-scale condominium renovations; JFTC imposes penalties on 40 companies and orders them to pay a surcharge of approximately 1.6 billion yen

Two design consulting companies and 40 construction companies were found to have violated antitrust laws during construction tours at 171 locations in the Kanto region.

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On the 28th, the Fair Trade Commission found two design consulting companies and 40 construction companies in violation of the Antimonopoly Act in bid-rigging over large-scale condominium repair work in the Kanto region, and issued orders to 37 companies to pay a total of approximately 1.6 billion yen in fines and cease and desist orders.

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Why It Matters

This is the first time that the JFTC has taken administrative action regarding large-scale repair work for an apartment complex.

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On the 28th, the Fair Trade Commission found that two design consulting firms, Rhinosys Corporation (Osaka City) and Sho Sekkei (Shibuya Ward, Tokyo), and 40 construction companies violated antitrust laws (unfair trade restrictions) in collusion over large-scale repair work for condominiums in the Kanto region, and ordered 37 of them to pay a total of approximately 1.6 billion yen in fines.

Is bid rigging involved in condominium repairs in the Tokai region? The JFTC conducts on-site inspections of more than 20 companies.

A total of 171 construction projects in the Kanto region, Tokyo, and six prefectures were found to have been involved in bid rigging. This is the first time that the JFTC has taken administrative action regarding large-scale repair work for an apartment complex.

The JFTC also issued cease and desist orders to 38 companies to prevent recurrence.

Other companies found to be in violation include Haseko Reform (Minato Ward, Tokyo), Shimizu Building Life Care (Chuo Ward, Tokyo), and Fujibo (Yokosuka City, Kanagawa Prefecture). Ikatsu (Yokohama City) had the largest amount of fines, totaling approximately 380 million yen.

Open Questions

What is the full picture of bid rigging in other regions?

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First case of bid-rigging in large-scale condominium renovations; JFTC imposes penalties on 40 companies and orders them to pay a surcharge of approximately 1.6 billion yen

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First case of bid-rigging in large-scale condominium renovations; JFTC imposes penalties on 40 companies and orders them to pay a surcharge of approximately 1.6 billion yen

Quick Look

Why It Matters

Open Questions

Related Topics

Related Stories

Shinki Bus hires a Chinese driver with specific skills and makes his debut on the Himeji Castle Loop Bus

Mister Donut opens new store in Shanghai, re-entering mainland China for the first time in 7 years

US-China trade commission established; list of items subject to mutual tariff reduction announced

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Beisia opens a new discount store “Kokotoku” in Fukaya City, Saitama Prefecture, strengthening its low price strategy

The U.S. and China establish a working group to improve market access in the agricultural sector and agree to $30 billion in tariff cuts