Tokyo, December 19, 2025 — Japan’s Fair Trade Commission (JFTC) has fined five engineering firms for colluding on bids for rail bridge inspection work managed by Central Japan Railway Co., finding the conduct violated the prohibition on unreasonable restraints of trade.
The JFTC said the companies coordinated bids for inspection services covering pedestrian bridges spanning railway tracks operated by JR Central, formally known as Tokai Railway Co., under contracts awarded by local governments and related public entities. The authority imposed total surcharges of JPY 102.25 million ($649,662).
Bid Coordination Scheme
According to the JFTC, the five firms — Japan Transportation Consultants, JR Tokai Consultants, Dainichi Consultant, Tonichi Consultant, and Maruei Survey & Design — agreed, no later than February 19, 2021, to predetermine which company would win each contract. The remaining firms either refrained from bidding, withdrew from tenders, or submitted higher-priced bids to ensure the designated bidder’s success.
JR Central participated in the scheme by providing the firms with detailed inspection lists identifying bridges scheduled for inspection and the relevant contracting authorities. The firms indicated their preferred projects by marking the lists, after which JR Central consolidated and redistributed the information, allowing the companies to finalize the allocation of contracts.
The JFTC found that bid prices were set solely by the designated winning firm, effectively eliminating price competition in the affected tenders.
Enforcement Measures
The authority concluded that the conduct substantially restricted competition in violation of Article 3 of Japan’s Antimonopoly Act. While JR Central was subject to a cease-and-desist order, it was not fined because it did not directly receive revenue from the inspection contracts during the infringement period.
The five consulting firms were ordered to pay surcharges by July 21, 2026. In addition, all six parties were instructed to formally confirm the termination of the illegal conduct at the board level, notify counterparties and relevant public bodies, and implement compliance programs, including internal guidelines, employee training, and regular audits.
Source: https://www.jftc.go.jp/houdou/pressrelease/2025/dec/251219_chubu_shinsa_kosenkyo.html
