New Year Message from Chairman (January 2021)
January 2021
I wish you a Happy New Year.
Three months have been passed since I was appointed as the Chairman of the Fair Trade Commission ("JFTC") in September last year. I have recognized the expandin g scope of our roles and felt the weight of responsibility as the Chairman.
We look forward to your encouragement and support in the implementation of our competition policy this year.
In assuming office as the Chairman, I stated that, recognizing that the strict enforcement of the Antimonopoly Act (“AMA”) and promotion of competition policy to create a fair and free market environment are the two wheels of the JFTC’s mission, and that I would like to perform our duties based on the accomplishment of the former Chairman Sugimoto.
1. Strict and Proper Law Enforcement
Due to effects of the COVID-19 outbreak, economic activities have been stagnant worldwide; and Japan is not an exception. Especially, small and medium enterprises have faced severe economic hardships under the circumstances where the end of this pa ndemic is unforeseeable. Under these circumstances, I believe that the strict and proper enforcement of the AMA and the Subcontract Act that enhance a fair and free competitive environment and the promotion of competitive policy is becoming more important.
Last year, the JFTC took legal actions against price-fixing cartels and bid riggings which had a huge influence on people's livings. The JFTC also filed a criminal accusation to the Public Prosecutor-General regarding the bid rigging case by drug wholesaler s. In addition, the JFTC properly utilized the Commitment procedure which was introduced in 2018. For instance, the JFTC, through the procedure, made a digital platform operator compensate business partners for their damages caused by the operator.
Besides, the amended AMA, taking effect last December, introduced the "Reduction System for Cooperation in Investigation and the "Determination Procedure." Whike using this new tool appropriately, the JFTC will continue to handle various cases through rigorous and proper law enforcement.
2. Promotion of Competition Policy
The JFTC has been actively involved in new economic and social trends, including the digitalization of the economy and diversification of working styles, and has been expanding its contribution from the perspective of competition policy.
Concerning the digitalization of the economy, improving the competitive environment in fields where "data" is processed as business resources is becoming important for promoting innovation. Last year, the JFTC published "Survey Report regarding Trading Practices of Online Restaurant-Review Portal Site" in March, and the two survey reports regarding fin tech, "Report of Survey on Household Accounting Services” and “Survey on Cashless Payments Including Using QR Codes” in April. We also published the "Survey Report regarding Shared Point Services" in June 2020. In addition, as described in "Interim Report regarding Digital Advertisement" published in April 2020, the JFTC will conduct surveys related to digital platforms and clarify the JFTC’s way of thinking under the AMA and competition policy.
Moreover, the JFTC has been holding the "Study Group on Competition Policy in Digital Markets" since July last year, researching issues and challenges on competition policy in digital markets. Furthermore, the JFTC launched the "Panel on Competition Policy in Data Markets" last autumn and will consider measures to activate competition by utilizing data.
The JFTC will continuously endeavor to understand the situations in digital markets through those initiatives and disseminate the way of the JFTC’s thinking under the AMA and competition policy.
Along with these advocative activities, it is necessary to take strict actions against anti-competitive activities in digital markets such as unfairly preventing new entrants or unfairly corralling data. In fact, in other jurisdictions, competition authorities have been taking actions against digital platforms since last autumn. For example, the Deprtment of Justice and the Federal Trade Commission in the U.S. filed lawsuits and the European Commission issued the statement of objection .
"The Act on Improvement of Transparency and Fairness in Trading on Specified Digital Platforms" will come into effect this year to set up rules for digital markets. The Headquarters for Digital Market Competition established in the Cabinet Secretariat will be a leading position to push forward government-wide initiatives in the digital markets. The JFTC will actively participate in these initiatives and endeavor to strengthen our organizational structure for the proper law enforcement.
In addition to the digital fields, the JFTC published the final report regarding trade practices of start-ups in November last year. The JFTC also released the draft text of the "Guideline concerning Business Alliance with Start-ups" in December, jointly with the Ministry of Economy, Trade and Industry, which is currently seeking for public comments. The JFTC will finalize the Guideline by taking public opinions into account.
For contributing to the improvement of compliance with the competition law, the JFTC will conduct surveys in order to quickly grasping rapid changes in economy and society, make proposals on specific industries, and improve competitive environment in cooperation with enterprises.
Regarding the diversification of working styles, the JFTC, jointly with other related government agencies , published the "Draft Guidelines for Secure Working Conditions for Freelancers", which is currently calling for public comments. The JFTC would like to cooperate with the agencies to finalize the guidelines thought referring to received comments.
3. Promotion of International Cooperation
As more and more enterprises operate internationally in accordance with the rapid globalization of the economy in recent years, competition authorities are confronted with an increasing need for cooperation with other competition authorities in the area of law enforcement, such as investigating international cartels, reviewing international mergers and dealing with anti-competitive behaviors by digital platform operators. In addition to law enforcement, international cooperation among competition authorities through various bilateral or multinational frameworks is becoming an important issue. The JFTC would like to make contributions to activities in these frameworks.
"Action Plan of the Growth Strategy"(interim report) in December last year presented a view that the government would discuss competition policy as one of the most important issues, especially in terms of the need to consider strengthening the enforcement of the AMA and to bolster competition policy.
The economic and social environment is changing day by day with rapid development of digital economy. Responding to such changes, the JFTC would like to participate in and contribute to the discussion for the consolidation of competition policy and strengthen our organization in order to properly implement competition policy.
Last but certainly not least, I would like to conclude my New Year's greeting by asking your understanding and support and expressing my hope that this year brings health and growth to you all.
