FTC Issues Cease-and-Desist Order over Nagano Gasoline Price Cartel

Tokyo, Nov. 26 (Jiji Press)–The Japan Fair Trade Commission on Wednesday issued a cease-and-desist order to a group of oil companies in the northern part of Nagano Prefecture over forming a price cartel for gasoline sold at gas stations in the central Japan prefecture. The antimonopoly watchdog also ordered 17 member businesses of the group to pay a total of 116 million yen in fines. The members include Takamisawa Co., Eneos Wing Corp. and a unit of Usami Koyu Corp. No fine was imposed on Takasawa Inc., as it voluntarily reported its breach of the antimonopoly law under a leniency program. Eneos Wing’s fine was reduced under the same program. According to the FTC, the northern Nagano branch of an oil trade association decided the size and timing of price hikes for regular and high-octane gasoline and communicated these to member firms operating gas stations. The aim of the practice, which began last December at the latest, was to avoid price competition among member firms and secure profits. The branch chief decided the retail price changes based on reductions in government subsidies paid to oil wholesalers to curb rising gasoline prices, and the member companies were required to implement the changes. The FTC also issued warnings to three companies that are not members of the group, on suspicion that they set their gasoline prices based on information obtained from member firms. It also urged the oil trade association to abide by the antimonopoly law, finding that the parent body had effectively condoned the branch’s price cartel. END [Copyright The Jiji Press, Ltd.]