Tokyo Hotels Face Warning Over Alleged Price Fixing
The Fair Trade Commission of Japan is poised to issue a warning to 15 high-end hotel companies operating in Tokyo, amid allegations of potential violations of the Antimonopoly Law. The commission's concerns stem from reports that these hotels have been exchanging sensitive information that could lead to a price-fixing cartel.
According to sources, representatives from prestigious establishments such as the Imperial Hotel and Hotel New Otani have been meeting approximately once a month to discuss various operational metrics, including occupancy rates, average room prices, and reservation statuses. These gatherings, informally dubbed "FR (Front Reservation) meetings," have reportedly been taking place for several decades, with the location rotating among the participating hotels.
The Antimonopoly Law is designed to promote free competition and prevent businesses from colluding to fix prices, which is classified as a "cartel" and is strictly prohibited. The Fair Trade Commission suspects that the exchange of detailed management strategies and pricing information at these meetings could facilitate a price-fixing arrangement among the hotels.