Tokyo Warns 2 Big Japanese Computer Firms on Bidding

Japan’s Fair Trade Commission on Friday issued stern warnings to two Japanese computer manufacturers that may have engaged in unfair trade practices by bidding one yen on local government projects.

After several weeks’ investigation, the commission decided that the bids of one yen, the equivalent of 0.7 cent, made by Fujitsu Ltd. and NEC Corp. required “stern warnings,” said Takashi Yamamoto of the FTC’s trade practices division.

The commission said the low bids, made on contracts to design computer software for several city governments, were judged likely to be “unjust low-price sales” and “customer inducement by unjust benefits” under the Unfair Trade Practices chapter of the Anti-Monopoly Law.

The FTC’s decision stopped short of saying the bids had violated the law but warned that if the two companies make excessively low bids again, there was a strong possibility that the “Anti-Monopoly Law would be applicable.”

NEC said in a statement that it had “reflected deeply on the social outcry over careless bidding” and had taken measures to ensure that it would not occur again.

Fujitsu also issued a statement saying it had taken steps to prevent such problems and repeated a request to Hiroshima and Nagano city officials to cancel the contracts won with low bids.