The Japan Fair Trade Commission on Tuesday conducted on-site inspections of more than 20 firms on suspicion of rigging bids for condominium repair projects in Aichi, Gifu and Mie prefectures, people familiar with the matter said.
The companies targeted for the investigation include general contractor Asanuma, Haseko Reform, a unit of construction company Haseko, Kenso Kogyo, Nihon Housing, Daikyo Anabuki Construction and construction-consulting firm T.D.S.
The antitrust watchdog in March last year conducted inspections of Haseko Reform and others in a similar bid-rigging case in the Kanto region. The FTC plans to issue cease-and-desist orders to some 40 firms in the case, accusing them of prearranging contract winners.
The FTC believes that bid-rigging in the Tokai region has been conducted for several years.
Asanuma said that it would fully cooperate with the investigation.
Bid-rigging raises construction fees unfairly.
About 40% of condominium repair projects in Japan cost at least ¥100 million, with the average amount per apartment ranging from 1 million to ¥1.25 million, according to a fiscal 2021 survey by the land ministry.