Japan’s antitrust regulator raids nine firms over Hokkaido Shinkansen bid-rigging

The Japan Fair Trade Commission (JFTC) conducted dawn raids on nine railway-related construction companies on 19 May 2026, targeting suspected bid-rigging in relation to the Hokkaido Shinkansen project. The national antitrust authority is investigating allegations that the firms colluded to pre-determine the winner of a contract for track-laying works.

According to the JFTC, the companies are suspected of repeatedly coordinating in advance to adjust the outcome of the bidding process. This practice, known as dango in Japan, is a serious violation of the country’s anti-monopoly laws, which strictly prohibit firms from undermining competitive bidding through secret agreements.

The inspection focuses specifically on the construction contract for laying tracks on the Hokkaido Shinkansen, a significant rail infrastructure development in northern Japan. The regulator’s action underscores the ongoing scrutiny of public procurement processes within the nation’s transport sector, where such collusion can inflate costs and reduce market competition.

While the JFTC has initiated these on-site inspections to gather evidence, the specific identities of the nine construction firms have not been disclosed in the initial reports. The investigation is currently in its early stages, and no final determinations regarding guilt or penalties have been made.

If the allegations are substantiated, the involved companies and their executives could face significant administrative fines and potential criminal penalties. The JFTC continues to monitor the situation as part of its broader mandate to enforce fair trade practices and maintain integrity in public and private sector contracting.