EXCLUSIVE: Japan FTC to Fine 30 Firms over Condo Renovation Bid-Rigging

Tokyo, June 12 (Jiji Press)–The Japan Fair Trade Commission plans to order about 30 construction companies, including Haseko Reform Inc., to pay a total of 1.6 billion yen in fines for bid-rigging in large-scale condominium renovation contracts in violation of the antimonopoly law, Jiji Press has learned. The FTC is set to issue cease and desist orders to about 40 companies, including two design consulting companies, informed sources said Thursday. The FTC has notified the companies of the proposed penalties and will make a final decision after hearing their opinions. The companies, also including Daikyo Anabuki Construction Inc., had been selecting contractors in advance for competitive bidding on large-scale condominium renovation projects commissioned by condominium management associations in the Kanto eastern Japan region beginning no later than the autumn of 2021, the sources said. Management associations fund renovation costs from reserve funds contributed by condominium residents, but the collusion may have increased their financial burden. The FTC conducted on-site inspections in March last year. END [Copyright The Jiji Press, Ltd.]