EXCLUSIVE: FTC to Issue Orders over Expressway Cleaning Bid-Rigging

Tokyo, Jan. 29 (Jiji Press)–Japan’s Fair Trade Commission plans to issue cease-and-desist orders to four road maintenance companies over bid-rigging in contracts for road cleaning services commissioned by Metropolitan Expressway Co., it has been learned. The FTC is set to fine two of the four firms, including Subaru Enterprise Co., which is listed on the Tokyo Stock Exchange’s Standard section, by a total of about 500 million yen, informed sources told Jiji Press on Wednesday. In September last year, the FTC conducted on-site inspections of the four companies and Metropolitan Expressway. The antimonopoly watchdog has already notified the four companies of the proposed penalties and will make a final decision after hearing their opinions. It is expected to continue its probe into Metropolitan Expressway. According to the sources, since around 2017, the four companies had predetermined the winners in general competitive bidding for work such as road cleaning and anti-icing operations on the Metropolitan Expressway. Bidding is held once every two years, with the expressway network–covering more than 320 kilometers–divided into four sections. Contract prices ranged from over 1 billion yen to some 2 billion yen per section, and each of the four companies secured contracts under the arrangement, the sources said. END [Copyright The Jiji Press, Ltd.]