September 4, 2024
Japan Fair Trade Commission
Today, I would like to explain the following matters: (1) FY 2025 Estimate Request and (2) Dispatch of JFTC’s General Secretariat Staff Member to the European Commission’s Directorate-General for Competition.
FY 2025 Estimate Request
On August 30, we made a budget request for FY 2025 and made it public. The JFTC’s budget request for FY 2025 was 17,422 million yen, an increase of 5,234 million yen or 42.9% from the previous year’s initial budget.
The followings are the main contents of the budget request.
As for the first item, “Strict and effective implementation of the Antimonopoly Act,” we requested 680 million yen for expenses necessary to take prompt and effective measures in the digital field, etc., strictly handle violations such as cartels and bid-rigging, and appropriately respond to global M&A reviews, etc.
As for the second item, “Strengthening the control of acts that unfairly disadvantage small and medium-sized enterprises,” we requested 1,097 million yen for expenses necessary to strictly address and prevent the abuse of superior bargaining position, such as the refusal to pass on increased costs for labor, raw materials, and energy, as well as violations of the Subcontract Act, etc. Additionally, it includes the cost of effectively enforcing the Freelance Act, which will come into effect in November of this year, and proactive public relations and consultation services to prevent violations, etc.
As for the third item, “Improving the competitive environment,” we requested 444 million yen for expenses necessary to strengthen advocacy, which includes conducting field surveys in various areas such as the digital market and carbon neutral and recommendations to improve trade practices. It also includes the costs required to prepare and effectively enforce the Mobile Software Competition Act (the Act), which was enacted in June of this year.
The fifth item, “Other,” includes approximately 4.4 billion yen in expenses for the relocation of the JFTC’s office building scheduled for FY2025, which results in a significant increase from the previous year.
Next, regarding the organization and the number of officials, measures including strengthening the enforcement system of the Act are set forth in the “Basic Policy on Economic and Fiscal Management and Reform” and the “Action Plan for a New Form of Capitalism,” and we made requests based on these items etc.
First, regarding the organization, for the strengthening of the system in accordance with the enforcement of the Act, etc., the followings are requested. (Following names of the officials are tentative.)
1. Establishment of Senior Deputy Secretary General for Digital and International Affairs
2. Establishment of Counselor for Mobile Software Competition Act
Furthermore, in order to strengthen measures against unfair practices that harm small and medium-sized enterprises and to further enhance the operational foundation of competition policy, we made the following requests. (Following names of the officials are tentative.)
3. Senior Planning Officer for enforcement collaboration in Inter-Enterprise Trade Division, Trade Practices Department, Economic Affairs Bureau
4. Establishment of Building Management Office, General Affairs Division, Secretariat
Also, regarding the number of officials, we are making requests for the necessary system development, such as requesting an increase of 35 officials to strengthen the enforcement system in accordance with the enforcement of the Act.
These are the contents of our budgetary requests for FY2025.
Dispatch of JFTC’s General Secretariat Staff Member to the European Commission’s Directorate-General for Competition
The Mobile Software Competition Act (the Act) was approved and passed at the plenary session of the House of Councillors on June 12 and promulgated on June 19 this year. On December 19, the provisions relating to the designation of providers subject to the Act will come into effect first, and by December next year, the Act will be fully enforced, including the obligations of the designated providers.
The JFTC is currently preparing for the implementation of the Act by formulating cabinet orders, regulations, and guidelines, as well as establishing the necessary framework for law enforcement.
The supplementary resolution of the Act calls for enhanced cooperation with competition authorities in various countries, including those in Europe. Since digital platform operators, who provide application stores, conduct business globally, ensuring the effectiveness of the Act’s regulations is crucial. To achieve this, we have worked closely with foreign competition authorities by for instance exchanging views, and advanced legal developments.
To further enhance international collaboration, we dispatched a staff member from the Office of Policy Planning and Research for Digital Markets, within the Economic Affairs Bureau of the JFTC’s General Secretariat, to the European Commission where legal regulations are advanced.
Starting this month, the dispatched staff member has been involved in the implementation of the Digital Markets Act at the European Commission’s Directorate-General for Competition. The knowledge and experience gained from the European Commission’s work on the Digital Markets Act will be leveraged in preparing for the enforcement of the Act. By maintaining close cooperation with the European Commission, we aim to ensure the effective implementation of the Act.
We plan to maintain close cooperation with the European Commission and other foreign competition authorities through regular exchanges of opinions and collaborative efforts to ensure the effective implementation of the Act.
（Tentative translation）
