Monday, Nov. 13, 1989
Business Notes COMPETITION
Fujitsu, Japan's largest computer firm, has often come under attack in the West for its trade practices. U.S. rivals have accused Fujitsu of a lowball pricing policy that keeps foreign firms out of the Japanese market. But last week a howl of protest went up in Japan when Fujitsu tried to carry out such pricing at home. The uproar occurred after Hiroshima's city government sought bids to design a new computer system. Seven firms offered to do the work at prices ranging from $2,000 to $201,000. But the winner was Fujitsu, which submitted a bid of less than a penny. The practice smacked of dumping, in which goods or services are sold below cost. Fujitsu hoped to recoup its initial loss by having city officials eventually buy more expensive software and hardware. While Fujitsu has admitted to carrying out similar practices in the past, it offered to retract the latest bid. Even so, the government has pledged to investigate whether the company broke any laws.