The Japan Fair Trade Commission on Thursday issued a cease and desist order to JTB and three other travel agencies in a tender case over a municipal project to transport COVID-19 patients.
This is the first time the antitrust watchdog has issued such an order on a project related to the COVID-19 pandemic.
The other three companies found to have violated the anti-monopoly law are Tobu Top Tours, Nippon Travel Agency Tohoku and Meitetsu World Travel.
The tender case also involved Kinki Nippon Tourist, but the company escaped punishment because it spontaneously reported the violation before the watchdog launched on-site inspections.
According to the watchdog and other sources, the project to transport COVID-19 patients from their homes to accommodation was ordered by the city of Aomori. The five companies conspired to decide in advance which of them would win five related tenders between April 2022 and March 2023, while agreeing that the winner would outsource some activities to the others.
Kinki Nippon Tourist won all tenders for a total amount of approximately ¥32 million. Profits from the project were divided almost equally among the companies involved, each receiving several million yen.
The bid rigging was apparently aimed at safeguarding profits at a time when travel demand plummeted due to the COVID-19 pandemic.
The antitrust watchdog also urged the Aomori city government to take necessary measures to prevent similar cases, and the Japan Association of Travel Agents to instruct its member companies to comply with the law.
