EXCLUSIVE: Japan FTC Inspects 4 Can Makers over Alleged Cartel

February 5, 2018

Tokyo- Japan's Fair Trade Commission conducted on-site inspections of four Tokyo-based can makers Tuesday for allegedly forming a price cartel for beverage cans to avoid competition, informed sources told Jiji Press.

The four companies are Toyo Seikan Co., Daiwa Can Co., Hokkai Can Co. and Universal Can Corp.

The four are suspected of violating the antimonopoly law by sharing information and restricting business activities related to the production and sales of aluminum and steel cans from some 20 years ago, the sources said.

They also allegedly made arrangements on prices of their products, such as beer and soft drink cans, that were shipped to client beverage makers.

The beverage can market in Japan is estimated at several hundred billion yen. The four makers are believed to hold a combined market share of 80 pct.

Shipments of cans for beer and beer-like beverages, which account for more than half of aluminum can demand in the country, have been declining since their peak in 1994.

Can makers also face a tough industry condition as beverage makers are shifting to plastic bottles from cans for their soft drinks, whose demand is growing, the sources said.

In April 2017, the FTC carried out on-site inspections of Toyo Seikan, Daiwa Can and Hokkai Can for allegedly repeating bid-rigging for cans used for canned food products.

On Tuesday, Toyo Seikan, Daiwa Can and Universal Can said they will fully cooperate with the FTC inspections. Hokkai Can also promised to make a sincere respose to the probe. Jiji Press