March 13, 2024
Japan Fair Trade Commission
(Efforts on Economic Analysis)
Today, I would like to talk about the JFTC's efforts on economic analysis.
The economic analysis means "a theoretical or empirical analysis based on economics to determine the effects or drivers of business or consumer behavior." By using such economic analysis in a variety of surveys, we can elucidate the actual situation more objectively and rationally. This will increase the sense of understanding among business operators and other stakeholders, and lead to the smooth implementation of law enforcement and advocacy.
Against the background of the effectiveness of economic analysis, many economists work for competition authorities in the West and are deeply involved in the investigation of various issues including business combinations. World-renowned economists are appointed to the positions that unite these economists (such as chief economists at the USDOJ and the DG COMP, and Director of Bureau of Economics at the USFTC).
The JFTC has also been advancing economic analysis efforts step by step. For instance, we began hiring economists around the time of the establishment of the Competition Policy Research Center in 2003. In 2012, we established the Economic Analysis Team in Mergers and Acquisitions Division, and in 2020, we assigned economic analysis staff to General Affairs Division. In 2022, we established the Economic Analysis Office and developed cross-sectional support system for economic analyses in merger reviews, market studies and case investigations.
The JFTC publishes its use cases of economic analysis. In FY 2023, for example, we analyzed how behaviors in contracting such as new contract executions and cancellations vary depending on differences in consumer attributes and preferences in the "Market Study Report on Connected TV and Video On-demand Service, etc." released last week. In addition, we analyzed the existence and extent of price increase incentives for the groups concerned in "The JFTC's Review Results Concerning Acquisition of Asiana Airlines Inc. by Korean Air Co., Ltd." released in this January. We will post additional use cases on our website later.
At present, the JFTC considers the development of the systems necessary for advanced economic analysis and the improvement of professional skills as the biggest challenges related to economic analysis. In this regard, the Cabinet approved the "Grand Design and Action Plan for a New Form of Capitalism - 2023 Revised Version" in last June, which stated that "we will promote the appointment of human resources with expertise in [...] economic analysis, etc. to the Japan Fair Trade Commission." In response to this, from April this year, the JFTC plans to hire some experts including university professors who are economists under the title of part-time "economic advisors," and request their support, advice, and participation in economic analysis work.
We will also widely recruit economists as full-time fixed-term employees. In addition, we plan to foster professional development by sending the JFTC officials to graduate schools in Japan and overseas, and by sending officials with backgrounds in economics to take training programs conducted by universities and research institutions in Japan and overseas. Through these measures, we will expand our systems and capabilities to further advance our economic analysis efforts.
（Tentative translation）
Today, I would like to talk about the JFTC's efforts on economic analysis.
The economic analysis means "a theoretical or empirical analysis based on economics to determine the effects or drivers of business or consumer behavior." By using such economic analysis in a variety of surveys, we can elucidate the actual situation more objectively and rationally. This will increase the sense of understanding among business operators and other stakeholders, and lead to the smooth implementation of law enforcement and advocacy.
Against the background of the effectiveness of economic analysis, many economists work for competition authorities in the West and are deeply involved in the investigation of various issues including business combinations. World-renowned economists are appointed to the positions that unite these economists (such as chief economists at the USDOJ and the DG COMP, and Director of Bureau of Economics at the USFTC).
The JFTC has also been advancing economic analysis efforts step by step. For instance, we began hiring economists around the time of the establishment of the Competition Policy Research Center in 2003. In 2012, we established the Economic Analysis Team in Mergers and Acquisitions Division, and in 2020, we assigned economic analysis staff to General Affairs Division. In 2022, we established the Economic Analysis Office and developed cross-sectional support system for economic analyses in merger reviews, market studies and case investigations.
The JFTC publishes its use cases of economic analysis. In FY 2023, for example, we analyzed how behaviors in contracting such as new contract executions and cancellations vary depending on differences in consumer attributes and preferences in the "Market Study Report on Connected TV and Video On-demand Service, etc." released last week. In addition, we analyzed the existence and extent of price increase incentives for the groups concerned in "The JFTC's Review Results Concerning Acquisition of Asiana Airlines Inc. by Korean Air Co., Ltd." released in this January. We will post additional use cases on our website later.
At present, the JFTC considers the development of the systems necessary for advanced economic analysis and the improvement of professional skills as the biggest challenges related to economic analysis. In this regard, the Cabinet approved the "Grand Design and Action Plan for a New Form of Capitalism - 2023 Revised Version" in last June, which stated that "we will promote the appointment of human resources with expertise in [...] economic analysis, etc. to the Japan Fair Trade Commission." In response to this, from April this year, the JFTC plans to hire some experts including university professors who are economists under the title of part-time "economic advisors," and request their support, advice, and participation in economic analysis work.
We will also widely recruit economists as full-time fixed-term employees. In addition, we plan to foster professional development by sending the JFTC officials to graduate schools in Japan and overseas, and by sending officials with backgrounds in economics to take training programs conducted by universities and research institutions in Japan and overseas. Through these measures, we will expand our systems and capabilities to further advance our economic analysis efforts.
（Tentative translation）
