Japan FTC Issues Cease-and-Desist Orders for 4 Nonlife Insurers

   Tokyo, Oct. 31 (Jiji Press)--The Japan Fair Trade Commission on Thursday imposed cease-and-desist orders on four major nonlife insurers over forming a price cartel in connection with insurance contracts for nine entities.
   On top of such orders, issued for antimonopoly law violations, the antitrust watchdog ordered the four to pay a total of 2,071.64 million yen in additional fines.
   The cease-and-desist orders were issued for Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co.
   The contracts were with Jera Co., Cosmo Oil Co., the Japan Organization for Metals and Energy Security, or JOGMEC, Sharp Corp., Keisei Electric Railway Co., the Tokyo Metropolitan Police Department, the Tokyo metropolitan government, Sendai International Airport Co. and Tokyu Corp. All cases, with the exceptions of those of the Tokyo police and the Tokyo metropolitan government, involved joint insurance contracts.
   The nonlife insurers' sales representatives and section chief-level officials had held discussions in advance, including over the phone, to maintain or raise insurance premiums in the processes involving estimates and bidding. For the contracts involving the operator of Sendai Airport in northeastern Japan and Tokyu, such talks were held at a karaoke shop in Tokyo's Chiyoda Ward.

(2024/10/31-18:31)

To read a full story, please click here to find out how to subscribe.