Competition Law Page - Natasha Fong

The Antimonopoly Act (AMA), enforced by the Japanese Fair Trading Commission (JFTC), is directed to prevent anti-competitive behaviour that restricts competition. However there has been a historical lack of emphasis on competition in Japan, and market structural issues remain, despite this law. Specifically, the organization of Japanese firms into cartels or keiretsu is seen to perpetuate practices that are anti-competitive. Aside from domestic market considerations, this has traditionally created difficulty for foreign firms entering the Japanese market.
The following links show some of the competition law initiatives aimed to open up the market to foreign investors:

Background
Outline of Japan's Laws on Competition
A quick introduction to the law governing competition, giving examples of enforcement actions of the Fair Trade Commission. However, be wary of bias favouring JFTC, as it is a summary of JFTC’s activities report.

Japan's Approach to Competition Policy in 2001
An extensive table outlining general policy framework, measures to deal with horizontal and vertical restraints, and improvements in the competition field since 1996.

Fair Trade Commission of Japan Homepage
Excellent portal site for antimonopoly law in Japan. Includes message from the Chairman, overview of the Antimonopoly Act, structure and role of the JFTC, press releases, annual reports, legislation, speeches and other links.

APEC Competition and Law Database
Contains links to policy statements, competition policies/laws, organizational structure, administrative procedures, decision guidelines, list of publications and subscription details, Q & As, decisions of administrative or quasi-judicial agencies, judicial cases, statistical data and issues related to competition laws.


Legislation
The following are English translations of the legislation, not intended to represent true legislation:

How is the Antimonopoly Act Implemented ?
Implementation of AMA (Source: JFTC)
Includes a chart showing the various stages of implementation, and the various departments responsible for each stage.

Administrative Guidance and the Antimonopoly Act (PDF)
Outlines how administrative guidance shall operate under the Interpretation Concerning Administrative Guidance under the AMA as formulated by the JFTC. The article gives some examples of unacceptable Guidance that would conflict with the AMA. Unfortunately, the article only reviews hypothetical situations, and doesn’t consider cultural, political and societal issues that could affect whether the laws would be implemented in a straightforward manner.


Cases
The Investigation of Violations of the Antimonopoly Act in 2000
Gives a number of charts and tables of statistics of violations investigated. Limited discussion.

Table of Judicial cases 1990-99
Neat table summarising accusations and sentences of some of the bigger cases. No discussion and does not detail facts of case.

Table of Administrative/Quasi-judicial decisions (2000)
Neat table describing the administrative recommendations given in 2000

Australia-Japan Agreements
Japan-Australia Relations (Source: MOFA). Includes statistics and updates on joint statements and co-operation. Menu (top of page) has links to rest of MOFA site, including foreign policy, economic affairs and culture.
Australia-Japan Market Access Priorities (PDF) (Source: DFAT, April 2000). Highlights some market access issues. In particular, suggests that changing circumstances in the Japanese market can make it easier for Australian businesses to compete seriously in Japan. Some nice examples of successes in pursuing market access together with actions taken/pending. Focus on agriculture, housing and construction, and services industry (including legal services).

Articles of interest
Comparative survey of competition law in U.S., E.U., Australia and Japan

(PDF) Excellent comparative paper in view of the delineations amongst different jurisdictions in their definition of anti-competitive conduct.
Japan's "Monzenbarai" Trade Policy
Canvasses the underlying structural issues, Japanese Government policy toward government intervention in the market place, and the role of Japanese industrial and competition policy in rectifying such problems.

Competition Policy, Free Trade Area, and Economic Growth (PDF) (2003 address by Hiroshi Ueno, JFTC). Defends the Japanese position and addresses the misunderstandings that Japan’s economic development has been brought about by industrial policy to substantially restrict competition and argues that Competition policy is not just a formality.

The activities of JFTC in 2002 (PDF) (Address by Chairman Kazuhiko Takeshima). Contains some solid examples and statistics of enforcement activities (surcharges, recommendations and warnings) of the JFTC

Trends in Competition Policy of Japan (PDF) (2002 speech by Tanabe Osamu, JFTC). Contains some nice charts showing number of investigations and hearings of anti-competition cases from 1996-2001.

Working papers- Columbia Business School, Centre on Japanese Economy and Business - Contains many interesting publications available for download in PDF format relating to business in Japan.

Competition in Japan's Telecommunication Sector: Challenges for the Japan Fair Trade Commission (PDF) (Address by Shogo Itoda, JFTC). A pro-JFTC outlook, denying the stereotype of JFTC as “a watch dog that does not bite”. Rather, it claims that the Commission has a “powerful roar and sharp bite to encourage competition”. Includes some interesting comments on how the JFTC will address certain issues, but lacks solid results to back up the claims.

The Role of Antitrust In International Trade - Address by Anne K. Bingaman (U.S. Department of Justice), highlighting concerns that verbal commitments of the Japanese government have not always been followed by meaningful action. Blames this on informalist, cultural and structural impediments.

Dealing with Japan on free trade (April 30, 2002, SMH) A short report revealing the high protection Japan affords its economy.

U.S. View of Japanese Antitrust Law – Keidanren review – analyses the effectiveness of antitrust enforcement in Japan, with reference to particular cases.


Problems/Complaints? Who to contact

Consultation and Complaints - Who to contact Designed for Foreign Firms for notification, reporting and consultation.
JFTC Contact information The Fair Trade Commission is established as an administrative body responsible for implementing Japan’s Antimonopoly Act and competition policy. This link lists the contact details of JFTC personnel.