September 11, 2024
Japan Fair Trade Commission
Today, I would like to explain the following matters: (1) Establishment of a Chief Green Officer and (2) Request for Participation in a Web Questionnaire and Proactive Information Submission for the Market Study on Business Practices in the Food Supply Chain.
Establishment of a Chief Green Officer
The JFTC established a new position, Chief Green Officer, on August 1 this year. Throughout this summer, Japan once again experienced record-breaking heat waves across the country. The issue of climate change is not only a concern for Japan, but a challenge for humanity as a whole, and it is becoming increasingly urgent for the international community to step up its collective efforts to address this global problem.
The JFTC has published the “Guidelines Concerning the Activities of Enterprises, etc. Toward the Realization of a Green Society under the Antimonopoly Act” (the Green Guidelines), and has been conducting publicity activities for the Green Guidelines and consultations with enterprises and trade associations to encourage their efforts to become carbon neutral.
Additionally, through the Market Study Report on the Electric Vehicle (EV) Charging Services and the Market Study Report on the Recycling of Used Plastic Bottles, which were conducted over the past two years, we gathered insights into market conditions and made recommendations, etc., for the future. Furthermore, as introduced during the July press meeting, we actively engaged in international collaboration in this field, including presenting Japan’s initiatives at the Workshop on Sustainability of the International Competition Network (ICN).
To further accelerate these efforts, a Chief Green Officer has been established in the JFTC’s General Secretariat. The Chief Green Officer, established by a commission directive, will be responsible for collecting and analyzing information on business activities, technological trends, market trends, and developments by foreign competition authorities, etc., related to the realization of a Green Society— a society that balances environmental sustainability and economic growth. In addition, the Chief Green Officer will provide this information both within and outside the JFTC, conduct pre-consultations, assist in the appropriate handling of merger reviews related to the realization of a Green Society, and promote the Commission’s efforts in this area to external stakeholders.
On September 1 of this year, the position of Chief Green Officer was assigned to Mr. Suzuki, the Director of the Consultation and Guidance Office. Mr. Suzuki was responsible executive for the formulation of the Green Guidelines in March 2023 and the revision in April, 2024. He currently oversees the Consultation and Guidance Office, which handles inquiries from enterprises and other organizations regarding individual initiatives.
The JFTC will continue to actively and appropriately address the various initiatives of enterprises and other organizations aimed at realizing a Green Society.
Request for Participation in a Web Questionnaire and Proactive Information Submission for the Market Study on Business Practices in the Food Supply Chain
The JFTC decided to conduct a market study on business practices in transactions between food manufacturers, wholesalers, and retailers within the food supply chain, from the perspective of abuse of superior bargaining position under the Antimonopoly Act. The study period covers one year, from September 2023 to August 2024. We will send out a request for cooperation in the web questionnaire to manufacturers and wholesalers on the 13th of this week.
For this market study, we would like to encourage a wide range of enterprises, including those not selected for the web questionnaire, to provide information. From the 13th of this week to the 25th of next month, the JFTC will set up an anonymous information submission form on its website, where enterprises can share information regarding business practices in the food supply chain. We strongly encourage those with relevant information to submit it through this form.
I would like to provide additional context regarding the background for conducting this market study. The JFTC has long held concerns regarding competition in food distribution. We conducted a market study on the distribution practices in the processed food industry in 1992, a market study on transactions between food manufacturers and wholesalers in 2011, and a Fact-Finding Survey on Transactions of Private Brand Products in the Food Sector in 2014. In this context, we had been receiving various concerns regarding business practices in the food supply chain related to competition. These voices and others led us to consider that certain industry-specific practices, such as the one-third rule for deliveries, may constitute problematic conduct from the perspective of abuse of superior bargaining position under the Antimonopoly Act.
Furthermore, concerns regarding competition in food distribution are being examined internationally. In December of this year, the OECD is scheduled to hold a roundtable on the theme of “Competition in the Food Supply Chain,” and similar discussions are taking place within the ICN. Taking these factors into consideration, we have decided to conduct this market study.
As for the conducts we are considering as potential issues in this market study, examples include those mentioned in the press release, such as unjust return of goods or refusal to accept goods by retailers. Specifically, there are concerns that retailers may unjustly refuse to accept deliveries on the grounds that the delivery deadline is approaching, based on the one-third rule, or that retailers may unjustly return unsold food to manufacturers or others.
If the study results identify any potentially problematic conduct, we plan to publicize the findings and widely disseminate them across the industry. Through this, we aim to promote fair transactions within the food supply chain and eliminate unjust burdens placed on food manufacturers and other stakeholders.
Based on the results of the web questionnaire, we plan to conduct interviews with retailers and aim to compile the findings by the end of 2024, if possible.
（Tentative translation）
