Antimonopoly Act and Competition Law
This section covers the Antimonopoly Act and competition law. The exam tests prohibited conduct, merger review, enforcement, and the boundary between legitimate competition and anticompetitive behavior.
Core rules
- The Japan Fair Trade Commission enforces the Antimonopoly Act. Prohibited conduct includes unreasonable restraint of trade, private monopolization, and unfair trade practices.
- Cartels are agreements among competitors to fix prices, restrict output, or allocate markets. Surcharges and leniency applications follow statutory procedures.
- Merger control requires prior notification if thresholds are met; the Japan Fair Trade Commission reviews market concentration and foreclosure effects. Unfair trade practices include unjust discrimination, below-cost pricing, and certain resale restrictions.
- Resale price maintenance is generally problematic unless justified; vertical restraints are assessed for market foreclosure and price maintenance.
Worked example
Three suppliers meet secretly and agree not to discount to a public buyer. They exchange bid prices before a tender. This is bid rigging and an unreasonable restraint of trade. The Japan Fair Trade Commission can issue a cease-and-desist order and impose surcharges. The first applicant for leniency may receive reduced or immunity treatment if it cooperates.
Traps
Do not treat all competitor contacts as illegal; the issue is agreement restraining competition. Do not confuse unilateral aggressive pricing with cartel conduct. Do not ignore merger notification thresholds. Do not assume leniency is automatic; order and cooperation rules apply.