April 10, 2024
Japan Fair Trade Commission
(Summary of the 226th Antimonopoly Meeting )
Today, I would like to talk about the summary of the 226th Antimonopoly Meeting held on March 8 this year.
In order to effectively and appropriately promote competition policy in response to changes in our country’s economy, the Antimonopoly Meeting has been held since November 1968 by JFTC with the aim of hearing the opinions of all people and deepening their understanding of the implementation of the Antimonopoly Act.
This time, the General Secretariat explained four themes, and we have received opinions and questions from the Meeting members on each theme as follows.
Regarding the first theme, “Efforts to realize appropriate price pass-through,” we received an opinion that “relating to the multi-layered subcontract structure, many manufactures can increase their prices when they sell products to wholesalers, however, there are some cases final contractors facing difficulty for price shifting, so I hope the JFTC will investigate such cases more deeply.” In response, we explained that we asked business associations to implement self-inspections and found many wholesalers and retailers did not have any measures to enhance price pass-through. We realize that it is necessary to further promoting the price shifting with business associations.
The second theme was “Revision of Guidelines Concerning the Activities of Enterprises, etc. Toward the Realization of a Green Society under the Antimonopoly Act,” in which we received a question that “I think it is important for the competition policy for green society to be consistent with these in other countries and regions, otherwise there will be difference of competitiveness among them. What are the statuses of their efforts?” and in response, we explained that this kind of guidelines are being developed actively in Europe, and we are carrying out initiatives for Green Society in line with the European countries. On the other hand, sustainability-related discussions and efforts are progressing in Asia, so we would like to lead these discussions.
The third theme was “the market study on electricity market (wholesale sector),” in which we received an opinion that “there is a huge competency gap between former general electricity utilities and newly entered power companies, so it is important to monitor and verify them continuously. As the Ministry of Economy, Trade and Industry is developing various systems for stable electric power supply, I think it is necessary to verify them from the view of competition environment. I expect the JFTC’s continuous efforts” and in response, we explained that along with the transition to achieve carbon neutrality, we think it will be important to generate electricity with incorporating new technologies. As same as the study we've done for wholesalers this time, the JFTC will pay close attention to the developing systems for electric generation.”
The forth theme was “Guide for the Design and Implementation of an Effective Antimonopoly Act Compliance Program: Focusing on Responses to Cartels and Bid-rigging,” in which we received a question “when an internal audit department of a company conducts an audit of mails by keyword research, I am wondering whether you provide the guide including best audit practices using AI,” and in response we explained that we have not include such practices in the guide, however, we will study these advanced practices of companies and reflect them in the guide accordingly.
JFTC will continue to promote competition policy effectively and appropriately based on the opinions above.
（Tentative translation）
Today, I would like to talk about the summary of the 226th Antimonopoly Meeting held on March 8 this year.
In order to effectively and appropriately promote competition policy in response to changes in our country’s economy, the Antimonopoly Meeting has been held since November 1968 by JFTC with the aim of hearing the opinions of all people and deepening their understanding of the implementation of the Antimonopoly Act.
This time, the General Secretariat explained four themes, and we have received opinions and questions from the Meeting members on each theme as follows.
Regarding the first theme, “Efforts to realize appropriate price pass-through,” we received an opinion that “relating to the multi-layered subcontract structure, many manufactures can increase their prices when they sell products to wholesalers, however, there are some cases final contractors facing difficulty for price shifting, so I hope the JFTC will investigate such cases more deeply.” In response, we explained that we asked business associations to implement self-inspections and found many wholesalers and retailers did not have any measures to enhance price pass-through. We realize that it is necessary to further promoting the price shifting with business associations.
The second theme was “Revision of Guidelines Concerning the Activities of Enterprises, etc. Toward the Realization of a Green Society under the Antimonopoly Act,” in which we received a question that “I think it is important for the competition policy for green society to be consistent with these in other countries and regions, otherwise there will be difference of competitiveness among them. What are the statuses of their efforts?” and in response, we explained that this kind of guidelines are being developed actively in Europe, and we are carrying out initiatives for Green Society in line with the European countries. On the other hand, sustainability-related discussions and efforts are progressing in Asia, so we would like to lead these discussions.
The third theme was “the market study on electricity market (wholesale sector),” in which we received an opinion that “there is a huge competency gap between former general electricity utilities and newly entered power companies, so it is important to monitor and verify them continuously. As the Ministry of Economy, Trade and Industry is developing various systems for stable electric power supply, I think it is necessary to verify them from the view of competition environment. I expect the JFTC’s continuous efforts” and in response, we explained that along with the transition to achieve carbon neutrality, we think it will be important to generate electricity with incorporating new technologies. As same as the study we've done for wholesalers this time, the JFTC will pay close attention to the developing systems for electric generation.”
The forth theme was “Guide for the Design and Implementation of an Effective Antimonopoly Act Compliance Program: Focusing on Responses to Cartels and Bid-rigging,” in which we received a question “when an internal audit department of a company conducts an audit of mails by keyword research, I am wondering whether you provide the guide including best audit practices using AI,” and in response we explained that we have not include such practices in the guide, however, we will study these advanced practices of companies and reflect them in the guide accordingly.
JFTC will continue to promote competition policy effectively and appropriately based on the opinions above.
（Tentative translation）
