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Chapter II Private Monopolization and Unreasonable Restraint of Trade

Article 3

An enterprise must not effect private monopolization or unreasonable restraint of trade.

Article 4 and Article 5

Deleted.

Article 6

An enterprise must not enter into an international agreement or an international contract which contains such matters which fall under unreasonable restraint of trade or unfair trade practices.

Article 7

(1) Whenever an act in violation of the provisions of Article 3 or the preceding Article occurs, the Fair Trade Commission may, pursuant to the procedures provided in Section 2 of Chapter VIII, order the relevant enterprise to cease and desist the relevant act, to transfer a part of the relevant enterprise's business, or to take any other measures necessary to eliminate the act in violation of the provisions.

(2) Whenever the Fair Trade Commission finds it to be particularly necessary, even if an act in violation of the provisions of Article 3 or the preceding Article has already ceased to exist, the Fair Trade Commission may, pursuant to the procedures provided for in Section 2 of Chapter VIII, order the following person to take measures to make public that the act has been discontinued and to take any other measures necessary to ensure elimination of the relevant act; provided, however, that this does not apply if five years have passed since the date of discontinuation of the relevant act.

(i) enterprise who committed the relevant act

(ii) if the enterprise who committed the relevant act is a juridical person, any juridical person surviving, or established as a result of the merger the enterprise ceased to exist

(iii) if the enterprise who committed the relevant act is a juridical person, any juridical person who has acquired all or part of the business involving the relevant act from the enterprise by virtue of a company split

(iv) any enterprise who has acquired all or part of the business involving the relevant act from the enterprise who committed the relevant act

Article 7-2

(1) If an enterprise unreasonably restrains trade or enters into an international agreement or an international contract containing particulars that fall under unreasonable restraint of trade in a category under any of the following items, the Fair Trade Commission must order the enterprise, pursuant to the procedures as provided in Section 2 of Chapter VIII, to pay to the national treasury a surcharge of an amount equivalent to ten percent (three percent for a retail business, or two percent for a wholesale business) of the amount of sales from the relevant goods or services (or of the purchase amount of the goods or services, calculated using the method provided by Cabinet Order, if the relevant act involves being supplied goods or services), calculated using the method provided by Cabinet Order, for the period from the date on which the enterprise began implementing the act in violation in its business activities to the date on which it stopped implementing the act in violation in its business activities (if the period exceeds three years, during the three years preceding the date on which the business activities constituting the relevant act were discontinued; hereinafter referred to as "Period of Implementation"); provided, however, that if the amount thus calculated is less than one million yen, the Commission may not order the payment of such a surcharge.

(i) those related to the price of goods or services;

(ii) those that substantially restrain any of the following with respect to goods or services and thereby affecting their price:

(a) supply or purchase volume

(b) market share

(c) transaction counterparties

(2) The provisions of the preceding paragraph apply mutatis mutandis to when an enterprise effects private monopolization (limited to that arising from the control of the business activities of other enterprise) that falls under either of the following items with respect to goods or services supplied by the relevant other enterprise (hereinafter referred to as "Controlled Enterprise" in this paragraph). In this case, the term "the amount of sales from the relevant goods or services (or of the purchase amount of the goods or services, calculated using the method provided by Cabinet Order, if the relevant act involves being supplied goods or services), calculated using the method provided by Cabinet Order" in the preceding paragraph is deemed to be replaced with "the amount of sales from the relevant goods or services supplied by the relevant enterprise to the Controlled Enterprise (including goods or services necessary for the Controlled Enterprise to supply the goods or services in the particular field of trade related to the relevant act) and of the goods or services supplied by the enterprise in the particular field of trade (excluding those supplied to Controlled Enterprise) calculated using the method provided by Cabinet Order," and the term "(three percent for a retail business, or two percent for a wholesale business)" is deemed to be replaced with "(three percent if the enterprise engages in retail business or two percent if the enterprise engages in wholesale business)."

(i) that involving prices;

(ii) that which substantially restrains any of the following and thereby affects prices:

(a) supply volume

(b) market share

(c) transaction counterparties

(3) The term "market share" provided in the preceding two paragraphs and paragraph (8) means the ratio of the volume of goods or services that one or two or more enterprise supplies or receives supplies of, to the aggregate total volume of the relevant goods or services supplied in any particular field of trade within a particular period, or the ratio of the value of goods or services that one or two or more enterprise supplies or receives supplies of, to the aggregate total value of the relevant goods or services supplied in any particular field of trade within a particular period.

(4) If an enterprise has engaged in private monopolization (limited to that engaged in by excluding the business activities of other enterprise, and excluding those which fall under the provisions of paragraph (2)), the Fair Trade Commission must order the enterprise, pursuant to the procedures provided in Chapter VIII, Section 2, to pay to the national treasury a surcharge in an amount equivalent to six percent (two percent if the relevant enterprise engages in the retail business, or one percent if the relevant enterprise engages in the wholesale business) of the amount of sales for goods or services supplied by the enterprise in any particular field of trade through the act (excluding goods or services supplied to other enterprise that supply goods or services in the relevant particular field of trade) and of the amount of sales for goods or services supplied by the enterprise to other enterprise that supply goods or services in the relevant particular field of trade (including goods or services that are necessary in order for the relevant other enterprise to supply the relevant goods or services in the relevant particular field of trade), both of which are calculated using the method provided by Cabinet Order, during the period from the date on which the enterprise began to engage in the act, to the date on which it stopped engaging in the act (if this period exceeds three years, it is deemed to be the three years preceding the date on which the enterprise stopped engaging in the act; referred to as the "Violation Period" in paragraph (27)); provided, however, that if the amount thus calculated is less than one million yen, the Commission may not order the payment of such a surcharge.

(5) In a case under paragraph (1), if the enterprise falls under any of the following items, the term "ten percent" appearing in that paragraph is deemed to be replaced with "four percent," the term "three percent" is deemed to be replaced with "one point two percent," and the term "two percent" is deemed to be replaced with "one percent":

(i) any company whose amount of stated capital or total contribution amount is not more than three hundred million yen and any company or individual whose number of regular employees is not more than three hundred, which operates as its principal business, a manufacturing, construction, transportation or other business (excluding the business types listed in items (ii) to (iv) inclusive and the business types provided by Cabinet Order pursuant to item (v)).

(ii) any company whose amount of stated capital or total contribution amount is not more than one hundred million yen and any company or individual whose number of regular employees is not more than one hundred, which operates a wholesale business (excluding business types provided by Cabinet Order pursuant to item (v)) as its principal business.

(iii) any company whose amount of stated capital or total amount of contribution is not more than fifty million yen and any company or individual whose number of regular employees is not more than one hundred, which operates as its principal business, business belonging to service business (excluding the business types provided by Cabinet Order pursuant to item (v)).

(iv) any company whose amount of stated capital or total amount of contribution is not more than fifty million yen and any company or individual whose number of regular employees is not more than fifty, which operates as its principal business, business belonging to retail business (excluding the business types provided by Cabinet Order pursuant to the following item).

(v) any company whose amount of stated capital or total amount of contribution is not more than the amount provided by Cabinet Order for each of its business types and any company or individual whose number of regular employees is not more than the number provided by Cabinet Order for each of its business types, which operates as its principal business, business belonging to any of the business types provided by Cabinet Order.

(vi) of cooperative partnerships and other partnerships established pursuant to special Acts with the principal purpose of company in business (including federation of partnerships), any partnership which has a scale comparable to the scale provided in each of the preceding items for the individual business type in the preceding items as provided by Cabinet Order.

(6) If an enterprise is ordered to pay a surcharge pursuant to the provisions of paragraph (1), the term "ten percent" appearing in paragraph (1) is deemed to be replaced with "eight percent," the term "three percent" is deemed to be replaced with "two point four percent," the term "two percent" is deemed to be replaced with "one point six percent," the term "four percent" in the preceding paragraph is deemed to be replaced with "three point two percent," the term "one point two percent" is deemed to be replaced with "one percent," and the term "one percent" is deemed to be replaced with "zero point eight percent" if the enterprise had stopped engaging in the relevant violation (limited to when the Period of Implementation for the violation is less than two years) by the day one month prior to the date on which the measure listed in Article 47, paragraph (1), item (iv) or the measure provided in Article 102, paragraph (1) was first taken for the case connected with the relevant violation (hereinafter referred to as "Investigation Start Date" in this Article) (if the measure is not taken, the day one month prior to the date on which the enterprise received notification in connection with the violation pursuant to the provisions of Article 50, paragraph (1) as applied mutatis mutandis pursuant to Article 62, paragraph (4) following the deemed replacement of terms (hereinafter referred to as "Advance notification" in the following paragraph, paragraph (10) and Articles 20-2 to 20-5 inclusive)); provided, however, that this does not apply if the enterprise is subject to the application of provisions of the following paragraphs (7), (8) and (9).

(7) If an enterprise is ordered to pay a surcharge pursuant to the provisions of paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms; hereinafter the same applies in this paragraph and in paragraphs (19), (22) and (23)) or pursuant to the provisions of paragraph (4), the term "ten percent" appearing in paragraph (1) is deemed to be replaced with "fifteen percent," the term "three percent" is deemed to be replaced with "four point five percent," the term "two percent" is deemed to be replaced with "three percent," the term "six percent" appearing in paragraph (4) is deemed to be replaced with "nine percent," the term "two percent" is deemed to be replaced with "three percent," the term "one percent" is deemed to be replaced with "one point five percent," the term "four percent" appearing in paragraph (5) is deemed to be replaced with "six percent," the term "one point two percent" is deemed to be replaced with "one point eight percent," and the term "one percent" is deemed to be replaced with "one point five percent," if the enterprise falls under any of the following items; provided, however, that this does not apply if the enterprise is subject to application of the provisions of paragraph (9).

(i) a person that was subject to an order pursuant to the provisions of paragraphs (1) or (4) (limited to when the order has become final and binding; the same applies in the following item), or a person that has received a notice pursuant to the provisions of paragraphs (18) or (21), or a person that was subject to decision pursuant to the provisions of Article 63, paragraph (2) within the ten years prior to the Investigation Start Date.

(ii) a person that was subject to an order pursuant to the provisions of paragraphs (1) or (4), a person that has received a notice pursuant to the provisions of paragraphs (18) or (21), or a person that was subject to a decision pursuant to the provisions of Article 63, paragraph (2) within the ten years prior to the date on which the enterprise received advance notification in connection with a violation if neither the measure listed in Article 47, paragraph (1), item (iv) nor the measure provided in Article 102, paragraph (1) was taken.

(8) If an enterprise is ordered to pay a surcharge pursuant to the provisions of paragraph (1), the term "ten percent" appearing in paragraph (1) is deemed to be replaced with "fifteen percent," the term "three percent" is deemed to be replaced with "four point five percent," the term "two percent" is deemed to be replaced with "three percent," the term "four percent" appearing in paragraph (5) is deemed to be replaced with "six percent," the term "one point two percent" is deemed to be replaced with "one point eight percent," and the term "one percent" is deemed to be replaced with "one point five percent," if the enterprise falls under any of the following items; provided, however, that this does not apply if the enterprise is subject to application of provisions of following paragraph.

(i) a person that planned to engage in a violation and required, requested or instigated another enterprise to engage in, or not to discontinue, a violation, either individually or in concert with others, thereby causing the other enterprise to engage in, or not to discontinue, a violation

(ii) a person that has, at the request of another enterprise, designated a price, supply volume, purchase volume, market share or transaction counterparty in relation to the goods or services involved in the violation, continuously to other enterprise, either individually or in concert with others

(iii) a person that has committed any of the following acts to materially facilitate the relevant violation, either individually or in concert with others, in addition to the person listed in the preceding two items

(a) requiring, requesting or instigating another enterprise to perform, or not to discontinue, the relevant violation

(b) designating price, supply volume, purchase volume, market share or a transaction counterparty to another enterprise in connection with the goods or services involved in the violation, or about business activities constituting the violation (excluding designations exclusively about one's own transactions)

(9) If an enterprise is ordered to pay a surcharge pursuant to the provisions of paragraph (1), the term "ten percent" appearing in paragraph (1) is deemed to be replaced with "twenty percent," the term "three percent" is deemed to be replaced with "six percent," the term "two percent" is deemed to be replaced with "four percent," the term "four percent" appearing in paragraph (5) is deemed to be replaced with "eight percent," the term "one point two percent" is deemed to be replaced with "two point four percent," and the term "one percent" is deemed to be replaced with "two percent," if the enterprise falls under any of the items in paragraph (7) and any of the items in the preceding paragraph.

(10) Notwithstanding the provisions of paragraph (1), the Fair Trade Commission may not order an enterprise that is to pay a surcharge pursuant to the provisions of paragraph (1) to pay the surcharge if the enterprise falls under both of the following items:

(i) the enterprise is the first among the enterprise who committed the relevant violation to individually submit reports and materials regarding the facts of the violation to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission (excluding when the reports and materials are submitted on or after the Investigation Start Date (or the date on which the enterprise received an advance notification in connection with the violation if neither the measure listed in Article 47, paragraph (1), item (iv) nor the measure provided in Article 102, paragraph (1) was taken; the same applies in the following item, the following paragraph and paragraph (25)) for the case connected with the violation).

(ii) the enterprise has not committed the relevant violation since the Investigation Start Date for the case connected with the violation.

(11) In a case under paragraph (1), the Fair Trade Commission is to reduce the relevant surcharge by fifty percent of the surcharge calculated pursuant to the provisions of paragraph (1) or paragraphs (5) to (9) inclusive, if the enterprise falls under items (i) and (iv) of this paragraph, or by thirty percent of the surcharge calculated pursuant to the provisions of paragraph (1) or paragraphs (5) to (9) inclusive, if the enterprise falls under items (ii) and (iv) or items (iii) and (iv) of this paragraph:

(i) the enterprise is the second among the enterprise who committed the relevant violation to have individually submitted reports and materials regarding the facts of the violation to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission (excluding when the reports and materials are submitted on or after the Investigation Start Date for the case connected with the relevant violation).

(ii) the enterprise is the third among the enterprise who committed the violation to have individually submitted reports and materials regarding the facts of the violation to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission (excluding when the reports and materials are submitted on or after the Investigation Start Date for the case connected with the relevant violation).

(iii) the enterprise is the fourth or fifth among the enterprises that committed the violation to individually submit reports and materials regarding the facts of the violation (excluding reports and materials related to the facts already ascertained by the Fair Trade Commission through the report provided in Article 45, paragraph (1), or the measures as provided in paragraph (4) of the same Article, or other means) to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission (excluding when the reports and materials are submitted on or after the Investigation Start Date for the case connected with the relevant violation).

(iv) the enterprise has not committed the relevant violation since the Investigation Start Date for the case connected with the relevant violation.

(12) In a case under paragraph (1), the Fair Trade Commission is to reduce the relevant surcharge by thirty percent of the surcharge calculated pursuant to the provisions of paragraphs (1) or (5) to (9) inclusive for an enterprise that committed the relevant violation and that falls under both of the following items, if the enterprise who submitted reports and materials regarding the relevant violation pursuant to the provisions of item (i) of paragraph (10) or item (i) to (iii) of the preceding paragraph number fewer than five (limited to when the sum of the enterprise who submitted reports and materials pursuant to the provisions of item (i) of paragraph (10) or item (i) to (iii) of the preceding paragraph and the enterprise who submitted reports and materials pursuant to the provisions of item (i) below number five or fewer, and when the total number of enterprise who submitted reports and materials pursuant to the provisions of item (i) below is three or fewer):

(i) the enterprise individually submitted reports and materials regarding the facts of the violation (excluding reports and materials related to the facts already ascertained by the Fair Trade Commission through the measures listed in the items under Article 47, paragraph (1) or provided in Article 102, paragraph (1), or other means) to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission, by the date set in the Rules of the Fair Trade Commission on or after the Investigation Start Date for the case connected with the relevant violation.

(ii) the enterprise other than that which has not committed the relevant violation since the date of submission of the reports and materials pursuant to the preceding item.

(13) If two or more enterprises (limited to when the enterprises are corporations) that have violated paragraph (1) have jointly submitted reports and materials regarding the facts of the relevant violation to the Fair Trade Commission pursuant to the provisions of the Rules of the Fair Trade Commission, the relevant reports and materials are deemed to have been submitted individually and the provisions of the preceding three paragraphs apply to the two or more enterprises who have submitted the relevant reports and materials, as long as the two or more enterprises fall under item (i) below and either item (ii) or (iii) below. In such cases, the two or more enterprises are deemed to be a single enterprise for the purposes of the calculation of the number of enterprises who have submitted the reports and materials under the provisions of paragraph (10), item (i), paragraph (11), items (i) to (iii) inclusive and item (i) of the preceding paragraph.

(i)that, at the time of the submission of the relevant reports and materials, the two or more enterprises are related as co-subsidiaries, etc. (meaning subsidiaries (meaning corporations for which the majority of the voting rights (excluding voting rights from shares for which voting rights cannot be exercised for all matters on which a resolution can be passed at the shareholders meeting, but including voting rights from shares that are deemed to confer voting rights pursuant to the provisions of Article 879, paragraph (3) of the Companies Act (Act No. 86 of 2005); hereinafter the same applies) of all shareholders (including all members; the same applies hereinafter) are held by another corporation. In such cases, if another corporation and one or more of its subsidiaries or if one or more subsidiaries of a corporation hold the majority of shareholders' voting rights in another corporation, the other corporation is deemed to be a subsidiary of the relevant corporation; the same applies hereinafter in this paragraph), a parent company of an enterprise (meaning another corporation of which the corporation is a subsidiary; the same applies in this item) of an enterprise, or another corporation whose parent company is the same as that of the enterprise; the same applies in the following item and paragraph (25)).

(ii) that, among the relevant two or more enterprises, the one that committed the violation in concert with another of the two or more enterprises, was related to the other enterprise as a co-subsidiary, etc. for the entire period during which it committed the relevant violation concert with the other enterprise (limited to within five years preceding the date on which the relevant reports or materials were submitted).

(iii) That a fact that falls under either of the following exists with regard to one of the two or more enterprises that has not committed the violation in concert with another of said two or more enterprises:

(a) the enterprises has transferred all or part of the business involved in the violation to another enterprises of the relevant two or more enterprises or has alienated all or part of the business involved in the violation through a company split, and the relevant other enterprise commenced the relevant violation on the date of the relevant transfer or of the company split.

(b) the enterprise has received all or part of the business connected to the violation from another enterprise of the relevant two or more enterprises or has succeeded to all or part of the business connected to the relevant violation through a company split, and first committed the violation on the date of the relevant transfer or of the company split.

(14) In a case under the preceding paragraph, the voting rights held by a corporation or the voting rights held by a corporation and any one or more of its subsidiaries or by any one or more subsidiaries of a corporation is to include the voting rights from shares that cannot be duly asserted against the issuer pursuant to the provisions of Article 147, paragraph (1) or Article 148, paragraph (1) of the Act on Book-Entry Transfer of Company Bonds, Shares (Act No. 75 of 2001).

(15) Whenever the Fair Trade Commission receives the submission of reports and materials pursuant to the provisions of item (i) of paragraph (10), items (i) to (iii) inclusive of paragraph (11), or item (i) of paragraph (12), the Fair Trade Commission must promptly notify the enterprise that submitted the relevant reports and materials to that effect in writing.

(16) Prior to issuing an order pursuant to the provisions of paragraph (1) or a notice pursuant to the provisions of paragraphs (18) or (21) to a enterprise that falls under any of the provisions of paragraphs (10) to (12) inclusive, the Fair Trade Commission may additionally request the relevant enterprise to submit reports or materials regarding the facts of the violation.

(17) If the Fair Trade Commission finds that a fact falling under any of the following items exists before issuing an order pursuant to the provisions of paragraph (1) or a notice pursuant to the provisions of following paragraph to an enterprise that submitted reports and materials pursuant to the provisions of item (i) of paragraph (10), items (i) to (iii) inclusive of paragraph (11), or item (i) of paragraph (12), these provisions do not apply, notwithstanding the provisions of paragraphs (10) to (12) inclusive:

(i) the reports or materials submitted by the enterprise (meaning the enterprise and any one or more other enterprises that submitted the reports and materials jointly with the enterprise, if the relevant enterprise is the person who submitted the reports and materials pursuant to the provisions of paragraph (13); the same applies in the following item) contained false information.

(ii) in a case under the preceding paragraph, the relevant enterprise fails to submit the requested reports or materials or submits false reports or materials.

(iii) in the case connected with the violation committed by the relevant enterprise, the enterprise coerced another enterprise (if the enterprise is the person that submitted the reports and materials pursuant to the provisions of paragraph (13), among the enterprise and any other one or more enterprises that submitted the reports and materials jointly with the enterprise, one that has coerced an enterprise other than the relevant enterprise and other than any other enterprise that submitted the reports and materials jointly with the enterprise) to commit the violation provided in paragraph (1) or blocked another enterprise from discontinuing the relevant violation.

(18) If the Fair Trade Commission has decided not to order the payment of a surcharge pursuant to the provisions of paragraph (10), it is to notify the relevant enterprise in writing of that decision at the time it issues an order, pursuant to the provisions of paragraph (1), to enterprises other than the enterprise regarding the case connected with the violation committed by the enterprise who fall under the provisions of paragraph (10) (by the time provided in the Rules of the Fair Trade Commission if the Fair Trade Commission does not issue an order pursuant to the provisions of paragraph (1)).

(19) In the case under paragraphs (1) or (4), if a final and binding decision on the same case sentences the relevant enterprise to a fine, instead of the amount calculated pursuant to the provisions of paragraphs (1), (4) to (9) inclusive, (11) or (12), the Fair Trade Commission is to deduct from the relevant amount the amount equivalent to one-half of the amount of the relevant fine; provided, however, that this does not apply if the surcharge amount calculated pursuant to the provisions of paragraphs (1), (4) to (9) inclusive, (11) or (12) does not exceed the amount equivalent to one-half of the amount of the relevant fine, or if the surcharge amount after the relevant deduction is less than one million yen.

(20) In the case under the proviso to the preceding paragraph, the Fair Trade Commission may not order payment of a surcharge.

(21) If the Fair Trade Commission does not order payment of a surcharge pursuant to the provisions of the preceding paragraph, it is to notify the fined enterprise to that effect in writing upon issuing an order pursuant to the provisions of paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms) or paragraph (4) to enterprise other than the relevant enterprises regarding the case connected with the violation provided in paragraph (1), (2) or (4) committed by the relevant enterprise (by the deadline provided for in the Rules of the Fair Trade Commission if the Fair Trade Commission does not issue an order pursuant to these provisions).

(22) Any enterprise who has received an order pursuant to the provisions of paragraph (1) or (4) must pay the surcharge calculated pursuant to the provisions of paragraphs (1), (4) to (9) inclusive, (11), (12) or (19).

(23) If the amount of surcharge calculated pursuant to the provisions of paragraphs (1), (4) to (9) inclusive, (11), (12) or (19) includes numbers to the right of the ten thousands place, the surcharge is rounded down to the nearest ten thousand yen.

(24) If an enterprise that has committed a violation provided in paragraphs (1), (2) or (4) is a juridical person and if the relevant juridical person has ceased to exist by virtue of a merger, the violation committed by the relevant juridical person and any order pursuant to the provisions of paragraph (1) (including when these are applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms) and paragraph (4), notice pursuant to the provisions of paragraphs (18) and (21), or decision pursuant to the provisions of Article 63, paragraph (2), received by the juridical person (hereinafter referred to as an "Order, etc." in this paragraph and the following paragraph) is deemed to be a violation committed by the juridical person surviving, or established as a result of the merger, or an Order, etc. received by the juridical person surviving, or established as a result of the merger for the purpose of application of the provisions of the preceding paragraphs and the following paragraph.

(25) If an enterprise that has committed a violation provided for in paragraph (1), (2) or (4) is a juridical person and the juridical person transferred all of the business connected with the violation to any one or more of its subsidiaries, etc. on or after the Investigation Start Date for the case connected with the relevant violation, or if the juridical person (limited to a corporation) had any one or more of its subsidiaries, etc. succeed to all of the business connected with the violation through a company split on or after the Investigation Start Date for the case connected with the violation, and ceased to exist due to a reason other than merger, the violation committed by the juridical person and the Order, etc. received by the juridical person is deemed to be a violation committed by the subsidiary, etc. to whom all or part of the relevant business has been transferred or who has succeeded to all or part of the relevant business through a company split (hereinafter referred to as a "Subsidiary, etc. That Has Succeeded to Specified Business") or to be an Order, etc. received by the Subsidiary, etc. That Has Succeeded to Specified Business, respectively, for the purpose of application of the provisions of the preceding paragraphs. In this case, if there are two or more subsidiaries, etc. that have succeeded to the specified business, the term "order the enterprise" appearing in paragraph (1) (including when it is applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms) is deemed to be replaced with "order the subsidiary, etc. that has succeeded to the specified business (meaning the Subsidiary, etc. That Has Succeeded to Specified Business as provided in paragraph (25); the same applies hereinafter), jointly and severally with any other subsidiary, etc. that has succeeded to the specified business and that has received an order pursuant to the provisions of this paragraph (including when these are applied mutatis mutandis pursuant to the following paragraph following the deemed replacement of terms)," the term "order the enterprise" appearing in paragraph (4) is deemed to be replaced with "order the subsidiary, etc. that has succeeded to the specified business, jointly and severally with another subsidiary, etc. that has succeeded to the specified business and that has received an order pursuant to the provisions of this paragraph," and the term "Any enterprise who has received an order pursuant to the provisions of paragraphs (1) or (4) must pay" appearing in paragraph (22) is deemed to be replaced with "Any Subsidiary, etc. That Has Succeeded to Specified Business and that has received an order pursuant to the provisions of paragraphs (1) or (4) must pay, jointly and severally with any other Subsidiary, etc. That Has Succeeded to Specified Business and that has received an order pursuant to these provisions."

(26) In a case under the preceding two paragraphs, matters necessary for the application of the provisions of paragraphs (10) to (12) inclusive are provided by Cabinet Order.

(27) After five years have passed since the end of the Period of implementation (or since the end of the Violation Period, for a violation as provided in paragraph (4)), the Fair Trade Commission may not order payment of a surcharge for the relevant violation.



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