Osaka Gas raided for alleged anti-competitive practice

August 3, 2017

TOKYO- The Japan Fair Trade Commission conducted an on-site inspection of the head office of Osaka Gas Co. on Thursday on suspicion of forcing business partners to buy products from the major city gas provider in return for maintenance jobs, informed sources told Jiji Press.

The FTC suspects that Osaka Gas abused its superior bargaining position against the business partners in violation of the antimonopoly law, the sources said.

Osaka Gas allegedly allocated the jobs of maintaining and fixing water heaters and stove burners to the partners depending on their purchase record of gas equipment made by the company. The practice effectively forced the partner companies to buy Osaka Gas appliances, the sources said.

An Osaka Gas official said the company will cooperate with the FTC inspection.

Founded in 1897, Osaka Gas supplies gas to 7.25 million households in the western Japan prefectures of Osaka , Kyoto , Hyogo, Nara , Shiga and Wakayama . The company is capitalized at about 132.2 billion yen and has some 5,700 employees.

After the city gas retail business was fully liberalized in Japan in April, new suppliers, including Kansai Electric Power Co., entered the market. Osaka Gas has since been facing fierce competition to win customers. Jiji Press