July 24, 2024
Japan Fair Trade Commission
(The 19th East Asia Top Level Officials’ Meeting on Competition Policy and the 16th East Asia Conference on Competition Law and Policy)
Today, I would like to talk about the 19th East Asia Top Level Officials’ Meeting on Competition Policy and the 16th East Asia Conference on Competition Law and Policy.
The 19th East Asia Top Level Officials’ Meeting on Competition Policy was held yesterday, Tuesday, July 23, in Kuala Lumpur, Malaysia. Chair Furuya, Commissioner Aoki and other staff members of the JFTC attended the meeting. In addition, the 16th East Asia Conference on Competition Law and Policy was also held in Kuala Lumpur this morning, Wednesday, July 24, in a hybrid format, both in person and online, with the attendance of Chair Furuya, Commissioner Aoki and other staff members of the JFTC.
This year, the JFTC, together with the Malaysia Competition Commission (MyCC), and the Asian Development Bank Institute (ADBI), hosted both meetings. The East Asia Top Level Officials’ Meeting on Competition Policy was attended by the heads of 16 competition authorities from the East Asia region. Additionally, the East Asia Conference on Competition Law and Policy included participants from the East Asia Top Level Officials’ Meeting, as well as members from academia and the legal community.
At the East Asia Top Level Officials’ Meeting on Competition Policy, following the opening remarks by Chair Furuya, Commissioner Aoki served as a speaker in the session titled “Digital Economy-Lessons from Market Reviews and Advocacy within the Region.” In this session, Commissioner Aoki explained the initiatives of the JFTC, focusing on the contents of the “the Act on Promotion of Competition for Specified Smartphone Software” that was enacted in June of this year and an overview of the investigation into Google that began in October last year.
While all the themes of the meeting had important content, the session on the digital sector was particularly valuable. It provided a platform for useful discussions and information exchange, including the latest initiatives by various authorities regarding the Big Tech. In this way, it was reaffirmed that countries had a shared awareness of the new challenges that competition authorities needed to address, and that it was important for each competition authority to work closely together while sharing knowledge and expertise.
The JFTC believes that this meeting is an excellent opportunity to build cooperative relationships among competition authorities in the East Asia region and to promote understanding of competition policy within it. The JFTC continues to actively contribute moving forward.
Additionally, the 20th East Asia Top Level Officials’ Meeting on Competition Policy will be hosted by the JFTC and is scheduled to be held in Tokyo in FY2025. Next year’s meeting will be a significant milestone as it marks the 20th anniversary of the East Asia Top Level Officials’ Meeting on Competition Policy. The JFTC will prepare thoroughly to ensure that next meeting will be successful and productive.
(The Study Group on Business Transactions)
Next, I would like to talk about our decision to hold the Study Group on Business Transactions.
As stated in the “Basic Policy on Economic and Fiscal Management and Reform 2024,” which was approved by the Cabinet in June this year, the government is currently working on measures to establish appropriate price pass-throughs across the entire supply chain as a new business practice.
In the JFTC, we have also clarified the interpretation of maintaining transaction prices without negotiations by amending the the “Guidelines Regarding the Implementation of the Subcontract Act.” Additionally, the JFTC has worked to strengthen enforcement related to the Antimonopoly Act and the Subcontract Act through special surveys and other means. As a result, while there has been progress in price negotiations and price pass-through efforts, it has become evident that there are still issues to be addressed in improving the trading environment. Specifically, as one moves down the supply chain and the layers become deeper, price pass-throughs are stalling.
Therefore, to improve the trading environment that promotes appropriate price pass-throughs as a new business practice throughout the entire supply chain, the JFTC has decided to hold the Study Group on Business Transactions in collaboration with the Small and Medium Enterprise Agency. This study group, comprised of relevant experts, focus on examining the regulations on the abuse of superior bargaining position, with particular emphasis on the Subcontract Act.
We held the first session of the study group this Monday, July 22. During this initial meeting, the secretariat explained the purpose and background of the study group, and the matters to be discussed hereinafter from the perspective of the issues with current business practices that need to be revised, the major directions for these revisions and the trading environment for smooth price pass-throughs to achieve a virtuous cycle of prices and wages.
In addition, the JFTC received the following opinions and others from the members of the study group:
The JFTC plans to hold the study group approximately once a month to discuss a wide range of issues. These include the establishment of an environment for appropriate price pass-through, such as the regulations on unfair price cutting, as well as issues related to payment methods, including promissory notes.
In addition, the JFTC will continue to diligently work on price pass-through measures. This includes thoroughly promoting the “Guidelines for Price Negotiations to Appropriately Pass Through Labor Costs,” established in November 2023 and conducting special surveys to follow up on the implementation status of the guideline.
（Tentative translation）
Today, I would like to talk about the 19th East Asia Top Level Officials’ Meeting on Competition Policy and the 16th East Asia Conference on Competition Law and Policy.
The 19th East Asia Top Level Officials’ Meeting on Competition Policy was held yesterday, Tuesday, July 23, in Kuala Lumpur, Malaysia. Chair Furuya, Commissioner Aoki and other staff members of the JFTC attended the meeting. In addition, the 16th East Asia Conference on Competition Law and Policy was also held in Kuala Lumpur this morning, Wednesday, July 24, in a hybrid format, both in person and online, with the attendance of Chair Furuya, Commissioner Aoki and other staff members of the JFTC.
This year, the JFTC, together with the Malaysia Competition Commission (MyCC), and the Asian Development Bank Institute (ADBI), hosted both meetings. The East Asia Top Level Officials’ Meeting on Competition Policy was attended by the heads of 16 competition authorities from the East Asia region. Additionally, the East Asia Conference on Competition Law and Policy included participants from the East Asia Top Level Officials’ Meeting, as well as members from academia and the legal community.
At the East Asia Top Level Officials’ Meeting on Competition Policy, following the opening remarks by Chair Furuya, Commissioner Aoki served as a speaker in the session titled “Digital Economy-Lessons from Market Reviews and Advocacy within the Region.” In this session, Commissioner Aoki explained the initiatives of the JFTC, focusing on the contents of the “the Act on Promotion of Competition for Specified Smartphone Software” that was enacted in June of this year and an overview of the investigation into Google that began in October last year.
While all the themes of the meeting had important content, the session on the digital sector was particularly valuable. It provided a platform for useful discussions and information exchange, including the latest initiatives by various authorities regarding the Big Tech. In this way, it was reaffirmed that countries had a shared awareness of the new challenges that competition authorities needed to address, and that it was important for each competition authority to work closely together while sharing knowledge and expertise.
The JFTC believes that this meeting is an excellent opportunity to build cooperative relationships among competition authorities in the East Asia region and to promote understanding of competition policy within it. The JFTC continues to actively contribute moving forward.
Additionally, the 20th East Asia Top Level Officials’ Meeting on Competition Policy will be hosted by the JFTC and is scheduled to be held in Tokyo in FY2025. Next year’s meeting will be a significant milestone as it marks the 20th anniversary of the East Asia Top Level Officials’ Meeting on Competition Policy. The JFTC will prepare thoroughly to ensure that next meeting will be successful and productive.
(The Study Group on Business Transactions)
Next, I would like to talk about our decision to hold the Study Group on Business Transactions.
As stated in the “Basic Policy on Economic and Fiscal Management and Reform 2024,” which was approved by the Cabinet in June this year, the government is currently working on measures to establish appropriate price pass-throughs across the entire supply chain as a new business practice.
In the JFTC, we have also clarified the interpretation of maintaining transaction prices without negotiations by amending the the “Guidelines Regarding the Implementation of the Subcontract Act.” Additionally, the JFTC has worked to strengthen enforcement related to the Antimonopoly Act and the Subcontract Act through special surveys and other means. As a result, while there has been progress in price negotiations and price pass-through efforts, it has become evident that there are still issues to be addressed in improving the trading environment. Specifically, as one moves down the supply chain and the layers become deeper, price pass-throughs are stalling.
Therefore, to improve the trading environment that promotes appropriate price pass-throughs as a new business practice throughout the entire supply chain, the JFTC has decided to hold the Study Group on Business Transactions in collaboration with the Small and Medium Enterprise Agency. This study group, comprised of relevant experts, focus on examining the regulations on the abuse of superior bargaining position, with particular emphasis on the Subcontract Act.
We held the first session of the study group this Monday, July 22. During this initial meeting, the secretariat explained the purpose and background of the study group, and the matters to be discussed hereinafter from the perspective of the issues with current business practices that need to be revised, the major directions for these revisions and the trading environment for smooth price pass-throughs to achieve a virtuous cycle of prices and wages.
In addition, the JFTC received the following opinions and others from the members of the study group:
1. The situations vary by industry, so discussions should consider the actual conditions of each industry.
2. Price pass-throughs have progressed to a certain extent, and discussions should accelerate from the perspective of ensuring that this momentum reaches small-sized enterprises as well.
The JFTC plans to hold the study group approximately once a month to discuss a wide range of issues. These include the establishment of an environment for appropriate price pass-through, such as the regulations on unfair price cutting, as well as issues related to payment methods, including promissory notes.
In addition, the JFTC will continue to diligently work on price pass-through measures. This includes thoroughly promoting the “Guidelines for Price Negotiations to Appropriately Pass Through Labor Costs,” established in November 2023 and conducting special surveys to follow up on the implementation status of the guideline.
（Tentative translation）
