Withdrawal of Appeal and Related Actions Concerning Litigation to Cancel Order for Removal and Suspension of Operations under the Construction Business Act

Summary of the Event

Taisei Corporation was indicted on suspicion of violating the Antimonopoly Act in relation to station construction using underground excavation methods for the Chuo Shinkansen Linear project. Following the Supreme Court decision confirming the conviction, the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism imposed an operational suspension order on the company's civil engineering operations nationwide, focusing on private-sector projects. In parallel, the company decided to withdraw its appeal in the litigation to cancel the order for removal issued by the Japan Fair Trade Commission.

Recurrence-Prevention Measures and Future Response

Since 2018, the company has implemented recurrence-prevention measures to ensure compliance with the Antimonopoly Act. In response to the current penalty, the company will rigorously enforce these measures and work to enhance the effectiveness of its legal compliance and overall compliance framework. Specifically, the company has disclosed in a separate document measures including stricter contact rules with industry peers, procedures to verify the proper conduct of bidding activities, establishment of a voluntary reporting system, and implementation of training.