Antimonopoly Law Violation Suspected at Marubeni Unit

Economy Politics

Tokyo, April 16 (Jiji Press)--Major Japanese trader Marubeni Corp. <8002> said Tuesday that a business practice possibly constituting a violation of the antimonopoly law has been detected at listed subsidiary Arteria Networks Corp. <4423>.

Arteria Networks President Jun Kawakami resigned the same day to take responsibility for the problem, and part-time board member Koji Kabumoto, who is from the parent company, assumed the top post at the unit.

Arteria Networks, which offers Internet services for condominiums, and Tsunagu Network Communications Inc., a unit of Arteria Networks, are suspected of forging an agreement with a rival company that they would not actively conduct marketing operations to each other's customers for service switch, according to Marubeni.

The questionable practice was discovered through an investigation carried out by outside lawyers following a whistleblower report.

Arteria Networks was listed on the first section of the Tokyo Stock Exchange last December.

[Copyright The Jiji Press, Ltd.]

Jiji Press