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Cease and Desist Order against DeNA Co., Ltd(Tentative Translation)

June 9/2011
Japan Fair Trade Commission

The Japan Fair Trade Commission (JFTC) has investigated DeNA Co.,Ltd. (DeNA) in accordance with the provisions of the Antimonopoly Act (AMA) and found it to be in violation of Article 19 of the AMA (falling within Paragraph 14 [Interference with a Competitor’s Transactions] of the Designation of Unfair Trade Practices). Accordingly, the JFTC today issued a cease and desist order pursuant to the provision of Paragraph 2, Article 20 of the AMA as shown below.

1 Violating Party

Name DeNA Co., Ltd.
Address 4-30-3, Yoyogi, Shibuya-ku, Tokyo
Representative Tomoko Namba
Business Outline Operation of mobile Social Networking Service (SNS)(Note 1) , Development and provision of social games(Note 2), Business to have other entrepreneurs provide social games, etc.

(Note 1) The term “mobile SNS” means the service which provides mobile website, which is equipped with the communication function among the users (Note 3), and which enables the use of this function in the applications software including the games etc.
(Note 2) The term “social games” means the games which are provided to the users through the mobile SNS, and they are able to use the communication function among the users in the games.
(Note 3) The term “user” means a person who registered as the member to use the mobile SNS.

2 Outline of the violation

DeNA forced “Specified Social Game Developers” (Note 4) not to provide the games through “GREE” (Note 5), by disconnecting the website links of the games the developers provided through “Mobage-Town” (Note 6) if the developers have provided the games through GREE.
(Note 4) The term “Specified Social Game Developers” means the social game developers (Note 7) which DeNA deemed potent and selected.
(Note 5) “GREE” is the mobile SNS which GREE, Inc. operates.
(Note 6) “Mobage-Town” is the mobile SNS which DeNA operates. At present, DeNA calls it “Mobage”.
(Note 7) The term “social game developers” means the social game developers except for DeNA and GREE, Inc.

3 Outline of the Cease and Desist Order

(1) DeNA shall adopt a resolution at its Board of Directors confirming that it has terminated the
action in item 2 above, and that it will never take similar action.
(2) DeNA shall notify the measures taken in accordance with item (1) above to GREE, Inc. and the social game developers which provide the games through Mobage-Town, and shall have such measures thoroughly disseminated to its employees.
(3) DeNA hereinafter shall never force social game developers not to provide the games through other mobile SNS, by disconnecting the website links of the games the developers provide through Mobage-Town if the developers have provided the games through other mobile SNS.
(4) DeNA shall take measures necessary to do the following; (a) Establish or revise the guidelines of activities with regard to compliance with the AMA as to transactions with the social game developers in relation to the mobile SNS which DeNA operates. (b) Implement a regular training program for the board members and employees, and regular audit by the legal department, with regard to compliance with the AMA as to transactions with the social game developers in relation to the mobile SNS which DeNA operates.

*Every announcement is tentative translation. Please refer to the original text written in Japanese.



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