FTC Issues Cease and Desist Orders to JTB and Other Travel Agencies

Japan’s Fair Trade Commission on Thursday issued cease-and-desist orders to JTB and three other travel agencies in a bid-rigging case for a city project to transport Covid-19 patients.

This is the first time the antitrust authority has issued such an order regarding a project related to the Covid-19 pandemic.

The other three companies found to have violated antitrust laws were Tobu Top Tours, Nippon Travel Agency Tohoku and Meitetsu World Travel.

Kinki Nippon Tourist was also involved in a bid-rigging case, but the company managed to avoid fines because it spontaneously reported the violation before the regulator began on-site inspections.

According to the regulator and other sources, the project to transport Covid-19 patients from homes to accommodation facilities was commissioned by the city of Aomori. The five companies colluded 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 part of the operation to others.

Kinki Nippon Tourist won all tenders for a total amount of approximately 32 million yen. Profits from the project were divided almost equally between the companies involved, with each receiving several million yen.

The bid rigging was apparently aimed at securing profits at a time when travel demand was plummeting due to the Covid-19 pandemic.

The antitrust authority also called on the Aomori city government to take necessary steps to prevent similar cases, and the Japan Association of Travel Agencies to instruct its members to comply with the law.