1-1-4 (Distribution of benefits to others such as participating firms)

Firms' concerted conduct or a trade association's conduct of making an expected bid winner distribute benefits to others such as participating firms through such means as the subcontracting of work or the payment of money.

## (Specific cases of violation)

Firm X and other construction firms (FTC Recommendation decision No.16 of 1992)

In this case, involving bids competed by designated firms for general contracting of civil engineering work ordered by Prefecture A, the designated firms had predetermined the expected bid winners. In order to facilitate the predetermined process of the expected bid winner, the bid winner had subcontracted, as the need arose, part of the awarded contracts as "relief measures" to other firms who had expressed an interest in the contract, or to other firms who had not been awarded a contract during a certain period of time. This was found to be in violation of Section 3.

Firm Y and other distributors of prophylactic pesticides (FTC Recommendation decision No.3 of 1992)

In this case, involving bids competed by designated firms or comparison of estimates submitted by designated firms for prophylactic pesticides ordered by municipalities in Prefecture B, the designated firms had predetermined the expected winners and the expected winning prices, and they had decided a method of profit distribution under which the expected winner would distribute part of the profits from the contract to other firms in order to equalize the profits of firms participating in the bid or comparison. This was found to be in violation of Section 3.

1-1-5 (Inviting or compelling firms to participate in the predetermined of an expected bid winner)

Firms' concerted conduct or a trade association's conduct of inviting or compelling other firms to participate in the predetermined action of an expected bid winner or to abide by the outcome of such a predetermined action; or of interfering with participation in a bid of firms which do not participate or cooperate in the predetermined action of an expected bid winner, through such means as boycott, discriminatory treatment by other firms or by the trade association; or of imposing disadvantages on firms which fail to abide by such predetermined action, through such means as boycott, discriminatory treatment by other firms or by the trade association and the levying of money.

## (Specific cases of violation)

In this case, involving bids competed by designated firms for asphalt paving work ordered by local government agencies in Prefecture A, the trade association had decided that it would make its members predetermined the expected bid winner at so-called "study meetings," and that, in order to ensure the predetermined, it would invite designated non-member firms to the study meetings and would refuse to supply asphalt materials to the firm which would not cooperate. This was found to be in violation of Section 8(1)(i) (Sec.8(i) of the existing Antimonopoly Act).

### Trade Association Y of surveyors (FTC Recommendation decision No.7 of 1982)

In this case, involving bids competed by designated firms or comparison of estimates submitted by firms for surveying and designing work ordered by local government agencies in Prefecture B, the trade association had decided that it would make its members predetermined the expected winner, and had formulated a set of "punitive