FTC to Issue Cease-and-Desist Orders over Maglev Bid-Rigging
Tokyo, Oct. 21 (Jiji Press)--Japan's Fair Trade Commission plans to issue a cease-and-desist order against four major general contractors over bid-rigging in the Chuo Shinkansen high-speed magnetic levitation railway project, it was learned Wednesday.
Obayashi Corp. <1802>, Shimizu Corp. <1803>, Kajima Corp. <1812> and Taisei Corp. <1801> will be ordered to prevent recurrences of collusive practices that amount to a violation of the antimonopoly law, informed sources said.
Obayashi and Shimizu, which won contracts under the scheme, will also be ordered to pay surcharges of about 3.1 billion yen and some 1.2 billion yen, respectively.
The antitrust watchdog has notified the four companies of the plan, and will formalize the decision after hearing from them.
Over the bid-rigging case, the Tokyo District Public Prosecutors Office's special investigation squad indicted the four general contractors, as well as former executives of Kajima and Taisei, in March 2018.
[Copyright The Jiji Press, Ltd.]