EXCLUSIVE: Japan FTC Inspects 4 Firms over Expressway Cleanup Bid-Rigging

Tokyo, Sept. 30 (Jiji Press)–Japan’s Fair Trade Commission on Tuesday conducted on-site inspections of four companies over their suspected bid-rigging for expressway cleanup contracts in violation of the antimonopoly law, Jiji Press learned. Among the four Japanese road maintenance companies are Subaru Enterprise Co., which is listed on the Tokyo Stock Exchange’s Standard section, and Nihon Highway Service Co., according to informed sources. Searched by the FTC were the companies’ head offices and other places. The firms are suspected of engaging in bid-rigging for Metropolitan Expressway Co. orders for the cleanup of expressways managed by the Tokyo-based company. The FTC plans to analyze seized materials and interview people concerned, suspecting that competition for road cleaning services may have been virtually restricted due to the four firms’ alleged malpractice. According to the sources, the four companies have allegedly predetermined winners of Metropolitan Expressway orders for at least several years. Bidding was held every two years for four expressway sections, with each order worth around more than one billion to 2 billion yen per section. The companies are believed to have coordinated to ensure that each firm can continue to win orders for the same section so that they can make stable profits, according to the sources. END [Copyright The Jiji Press, Ltd.]