Taisei Corporation has been ordered to stop part of its business for 120 days, and the part is narrower than the word "suspension" suggests. The Kanto Regional Development Bureau of the transport ministry issued the order on October 23, 2026, under Article 28, paragraph 3 of the Construction Business Act. It covers nationwide civil-engineering business, but only work for private-sector clients.
What is suspended, and when
The suspension runs from November 7, 2026 to March 6, 2027. Taisei's disclosure defines the scope as "civil-engineering business nationwide, limited to private-sector works". Nothing in the notice extends the order to building construction or to public-sector civil engineering. The notice also does not say how existing contracts will be handled or what the suspension will cost the company.
The case behind it
The sanction follows a prosecution of Taisei on suspicion of violating the Antimonopoly Act over underground open-cut construction of the new Linear Chuo Shinkansen terminal stations at Shinagawa and Nagoya. On September 14, 2026, the Supreme Court dismissed Taisei's appeal, and the guilty verdict became final. For the court ruling itself, see Earlier Tokyo Brief coverage.
A second, separate withdrawal
Taisei also said it has decided to withdraw its appeal and petition for acceptance at the Supreme Court. These challenged the cease-and-desist order issued by the Japan Fair Trade Commission over the same case, and Taisei had announced them on May 27, 2025. The disclosure gives no reason for the decision.
Compliance measures cited
Taisei apologised to shareholders and other stakeholders and said it takes the sanction seriously. It listed measures it has applied since 2018:
- Staff must file notice through a dedicated system before meeting competitors and report afterwards. Meetings held without that procedure are in principle banned.
- Emails between sales staff and competitors are monitored. Outgoing messages go automatically to the sender's direct superior, and the general affairs department periodically checks incoming ones. Using non-company email addresses for such contact is banned.
- The bid-appropriateness check sheet, previously required for government works and subsidised private works, now also covers projects ordered by railway operators and similar clients.
- Taisei has set up internal and external channels where employees can voluntarily report, or seek advice on, contact with competitors that involved or risked an Antimonopoly Act violation.
- All staff take e-learning, and sales and order-related engineering staff attend training by outside experts.
The company said it will keep applying these measures strictly and work to make its compliance system more effective.