42 Japanese firms engaged in bid-rigging over condo repair work

The Japan Fair Trade Commission has penalized 42 Japanese firms for engaging in bid-rigging during large-scale repair contracts for condominiums in Tokyo and surrounding prefectures. The commission imposed fines totaling approximately ¥1.6 billion ($10.2 million) on 37 of the firms, with the largest penalty of about ¥380 million imposed on Ikatsu in Yokohama.

The malpractice was found to have occurred between autumn 2021 and March of the previous year, affecting repair contracts for 171 condominium buildings. The consulting companies, Renosys and Sho-Sekkei, were also issued cease-and-desist orders. The companies allegedly preselected winning firms before the bidding process, shared undisclosed information, and paid the winning bidders a percentage of the contract value.

The commission concluded that the bid-rigging practice inflated repair costs, though actual expenses were within budget levels. Both Renosys and Ikatsu expressed their commitment to running their businesses fairly and regaining public trust.