On October 13, the Japan Fair Trade Commission (JFTC) ruled that six companies—including an affiliate of JR East and Totetsu Kogyo—violated the Antimonopoly Act in connection with track maintenance contracts for the Toei Subway. The JFTC issued cease-and-desist orders and imposed fines on five of the firms, except for Tokyu Kidoh Kogyo, which had voluntarily reported the violation. The six firms were found to have restricted competition by prearranging winning bidders. In addition, the JFTC is reportedly investigating the client, the Tokyo Metropolitan Government’s Bureau of Transportation, for allegedly facilitating the bid-rigging by leaking confidential tender information in advance.

Just one week earlier, the JFTC launched a compulsory investigation into Japan’s four major breweries over suspected price-fixing of regular beer and happoshu (low-malt beer). The four companies allegedly coordinated the timing and scale of price hikes during what they referred to as "secret meetings." Meanwhile, in September, large-scale collusion was uncovered in major condominium renovation projects. Two architectural design and consulting firms appointed by condominium management associations reportedly colluded with contractors to receive kickbacks across multiple renovation projects. Both consulting firms and forty contractors were found in violation of the Antimonopoly Act.

Whenever collusion and cartels come to light, some defend them as a "necessary evil." Proponents argue that these entrenched practices curb cutthroat price wars, ensure quality and timely delivery by allocating work according to company scale and capacity, stabilize business operations by reducing risks, and protect employment. However, what is really at stake is the asymmetry between supply and demand, and the fairness of market transactions. Is consumers’ right to choose being infringed upon? Are unjustified costs being passed along? And in the case of public works funded by taxpayers’ money, is transparency in the bidding process truly guaranteed? In the first place, there is no rationale for defending unfair players who refuse to abide by the rules.

On October 12, the International Monetary Fund (IMF) announced its estimate of Japan’s nominal GDP at US$ 4.4676 trillion. If this estimate is correct, Japan will fall to sixth in the world by next year—not only behind the United States, China, and Germany, but also overtaken by India and the United Kingdom. While currency depreciation is a major factor, a chronically weak yen also reflects waning international confidence in the country's capabilities. Fair and impartial market transactions, that is, a healthy competitive environment, are a prerequisite for raising productivity, generating high added value, and spurring innovation. Remaining trapped in inward-looking club mentalities and complacency with outdated industry norms will only leave Japan further behind. The market urgently needs bold disruptors willing to break free from tradition, precedent, and conventional constraints.

Takashi Mizukoshi, the President
This Week’s Focus, October 11– October 15, 2026