Fair Trade Commission slams fibre cartel

16 Apr 2010

Japan’s Fair Trade Commission (FTC) looks poised to levy massive surcharges totalling JPY16 billion (USD171.7 million) on a group of ten fibre-optic cable parts manufacturers for allegedly operating a cartel for equipment ordered by the regional operating units of NTT Corp, NTT East and NTT West. In particular the FTC has sent notification to four firms seen as lead players in forming the cartel – Sumitomo Electric Industries, Furukawa Electric, Fujikura and SWCC Showa Cable Systems – indicating its intention to impose the surcharges and put an end to price-fixing collusion. Other companies coming under the watchdog’s gaze include Advanced Cable Systems Corp and Hitachi Cable Ltd, which have been under suspicion of running a cartel on parts since February 2005. The FTC believes vendors have been guilty of managing orders from NTT East and NTT West, and fixing their costs.