April 5, 2023
Japan Fair Trade Commission
(On the Final report of the Review Group on the Procurement Reform of Information Systems by the Digital Agency)
Today, I would like to discuss two topics about the surveys conducted by the Japan Fair Trade Commission as one of the important pillars of its advocacy.
First, I would like to talk about the "Final Report of the Review Group on the Procurement Reform of Information Systems by the Digital Agency" as initiatives by relevant ministries and agencies in light of the survey reports published by the Japan Fair Trade Commission (JFTC) in the past.
The Digital Agency published the Final Report of the Review Group on the Procurement Reform of Information Systems in March. The Review Group considered discussion points derived from the issues and recommendations related to procurement of information systems presented in the Report on the Survey of Procurement of Information Systems by Government Offices published by the JFTC in February last year (2022). Specifically, based on the recognition of the importance of creating an environment that facilitates the entry of diverse vendors by, for example, avoiding vendor lock-in, the report by the JFTC clarified the view from competition policy and made recommendations to the Digital Agency and other relevant ministries and agencies. In light of this, the Digital Agency's final report indicated the direction of specific measures by referring to overseas cases and questionnaires to SMEs and start-up companies.
For example, (1) the JFTC’s report clarified that loosely coupled information systems would facilitate the entry of new vendors of various business sizes and would be desirable from a competition policy’s perspective, whereas the Digital Agency's final report indicated specific promotion measures, including the creation and sharing of a collection of best practice examples of successful adoption of loosely coupled and open technologies. (2) The JFTC's report pointed out that, from the perspective of further enhancing competitiveness in procurement of government information systems, it would be desirable from a view of competition policy to develop an environment that allows government agencies to match with various vendors. In response, the Digital Agency's final report indicated that, first of all, in fiscal year 2023, the Digital Agency would demonstrate the construction of a catalog site that would be required to develop a system allowing government offices to match with various vendors.
The JFTC has been actively engaged in advocacy activities through fact-finding surveys and other means, and we believe that the fact-finding survey conducted to understand the actual state of procurement of information systems by government officers has yielded meaningful results in that it has led to concrete initiatives to develop a competitive environment in collaboration with relevant ministries and agencies to realize a digital society.
The JFTC will continue to work to improve the competitive environment through effective advocacy activities by conducting fact-finding surveys, focusing on areas where the further promotion of fair and free competition is required, in light of socioeconomic conditions and other factors.
(Commencement of a fact-finding survey on electric vehicle (EV) charging services on highways)
Next, I would like to talk about the initiation of a survey on electric vehicle (EV) charging services on highways as a new fact-finding survey.
First, I would like to explain the background and methods of the survey.
The Japanese government has set a goal of achieving carbon neutral by 2050, and in the Basic Policies for Economic and Fiscal Management and Reform 2022 approved by the Cabinet in June 2022, we are aiming to achieve a target of 100% as the ratio of so-called electrified vehicles sales (electric vehicles, fuel cell vehicles, plug-in hybrid vehicles and hybrid vehicles) to new vehicle sales by 2035, through the development of charging infrastructure and other measures.
In light of this government target, EV charging service market is expected to grow rapidly in the coming years, and the market environment is also expected to undergo significant changes, including related regulations. Therefore, the JFTC believes that it is important to proactively make recommendations to improve the competition environment, based on a prompt and accurate assessment of the competitive situation.
In particular, from the perspective of the EV penetration, it is important to first dispel concerns about charging for long-distance travel, such as highway travel. Therefore, in this fact-finding survey, we hope to clarify the actual state of competition regarding EV charging services on highways through interviews and other means.
If any problems are found in transactions related to EV charging services as a result of the survey, we will point them out and present our views on these issues from the standpoint of the Antimonopoly Act and competition policy, and make recommendations on them. Thereby, we aim to promote fair and free competition by encouraging new entrants and promoting innovation in the development of charging infrastructure, and also to support the realization of a green society from the perspective of competition policy.
In the future, in order to gain a broad understanding of the current state of the EV charging services market, we would like to have interviews, etc. with relevant business operators and others. We would like to ask your understanding of the purpose of this survey and cooperation.
The Coordination Division of the Economic Affairs Bureau is in charge of this matter.
（Tentative translation）
Today, I would like to discuss two topics about the surveys conducted by the Japan Fair Trade Commission as one of the important pillars of its advocacy.
First, I would like to talk about the "Final Report of the Review Group on the Procurement Reform of Information Systems by the Digital Agency" as initiatives by relevant ministries and agencies in light of the survey reports published by the Japan Fair Trade Commission (JFTC) in the past.
The Digital Agency published the Final Report of the Review Group on the Procurement Reform of Information Systems in March. The Review Group considered discussion points derived from the issues and recommendations related to procurement of information systems presented in the Report on the Survey of Procurement of Information Systems by Government Offices published by the JFTC in February last year (2022). Specifically, based on the recognition of the importance of creating an environment that facilitates the entry of diverse vendors by, for example, avoiding vendor lock-in, the report by the JFTC clarified the view from competition policy and made recommendations to the Digital Agency and other relevant ministries and agencies. In light of this, the Digital Agency's final report indicated the direction of specific measures by referring to overseas cases and questionnaires to SMEs and start-up companies.
For example, (1) the JFTC’s report clarified that loosely coupled information systems would facilitate the entry of new vendors of various business sizes and would be desirable from a competition policy’s perspective, whereas the Digital Agency's final report indicated specific promotion measures, including the creation and sharing of a collection of best practice examples of successful adoption of loosely coupled and open technologies. (2) The JFTC's report pointed out that, from the perspective of further enhancing competitiveness in procurement of government information systems, it would be desirable from a view of competition policy to develop an environment that allows government agencies to match with various vendors. In response, the Digital Agency's final report indicated that, first of all, in fiscal year 2023, the Digital Agency would demonstrate the construction of a catalog site that would be required to develop a system allowing government offices to match with various vendors.
The JFTC has been actively engaged in advocacy activities through fact-finding surveys and other means, and we believe that the fact-finding survey conducted to understand the actual state of procurement of information systems by government officers has yielded meaningful results in that it has led to concrete initiatives to develop a competitive environment in collaboration with relevant ministries and agencies to realize a digital society.
The JFTC will continue to work to improve the competitive environment through effective advocacy activities by conducting fact-finding surveys, focusing on areas where the further promotion of fair and free competition is required, in light of socioeconomic conditions and other factors.
(Commencement of a fact-finding survey on electric vehicle (EV) charging services on highways)
Next, I would like to talk about the initiation of a survey on electric vehicle (EV) charging services on highways as a new fact-finding survey.
First, I would like to explain the background and methods of the survey.
The Japanese government has set a goal of achieving carbon neutral by 2050, and in the Basic Policies for Economic and Fiscal Management and Reform 2022 approved by the Cabinet in June 2022, we are aiming to achieve a target of 100% as the ratio of so-called electrified vehicles sales (electric vehicles, fuel cell vehicles, plug-in hybrid vehicles and hybrid vehicles) to new vehicle sales by 2035, through the development of charging infrastructure and other measures.
In light of this government target, EV charging service market is expected to grow rapidly in the coming years, and the market environment is also expected to undergo significant changes, including related regulations. Therefore, the JFTC believes that it is important to proactively make recommendations to improve the competition environment, based on a prompt and accurate assessment of the competitive situation.
In particular, from the perspective of the EV penetration, it is important to first dispel concerns about charging for long-distance travel, such as highway travel. Therefore, in this fact-finding survey, we hope to clarify the actual state of competition regarding EV charging services on highways through interviews and other means.
If any problems are found in transactions related to EV charging services as a result of the survey, we will point them out and present our views on these issues from the standpoint of the Antimonopoly Act and competition policy, and make recommendations on them. Thereby, we aim to promote fair and free competition by encouraging new entrants and promoting innovation in the development of charging infrastructure, and also to support the realization of a green society from the perspective of competition policy.
In the future, in order to gain a broad understanding of the current state of the EV charging services market, we would like to have interviews, etc. with relevant business operators and others. We would like to ask your understanding of the purpose of this survey and cooperation.
The Coordination Division of the Economic Affairs Bureau is in charge of this matter.
（Tentative translation）
