September 18, 2024
Japan Fair Trade Commission
Today, I would like to explain the following matters: (1) Launch of Market Study on Corporate Compliance and (2) Commemorating the 25th Anniversary of the Japan-U.S. Competition Cooperation Agreement.
Launch of Market Study on Corporate Compliance
The JFTC has been actively supporting initiatives by enterprises to promote Antimonopoly Act compliance, with the aim of fostering an environment where competitive business activities can be conducted autonomously. As part of these efforts, we published the “Guide for the Design and Implementation of an Effective Antimonopoly Act Compliance Program” in December last year.
In recent years, on the other hand, there have continued to be cases where Antimonopoly Act compliance appears not to be functioning effectively. For instance, in some cease and desist orders issued against enterprises that violated the Antimonopoly Act, those companies have been ordered to implement measures to prevent recurrence, including the establishment of compliance systems. In response, the JFTC has decided to conduct a study on Antimonopoly Act compliance aimed at further improving the effectiveness of enterprises’ compliance efforts. This study targets 1,643 companies listed on the Tokyo Stock Exchange Prime Market (as of the end of August 2024, excluding foreign companies).
This is the first study on Antimonopoly Act compliance targeting listed companies in 12 years, since the last one conducted in 2012.
As for the content of the study, we aim to assess how enterprises are responding to recent trends in the following areas, in addition to the general development and implementation of Antimonopoly Act compliance programs. Specifically, with the recent rapid advancement of IT technologies such as AI, there are growing concerns about the potential for Antimonopoly Act violations through the use of algorithms and AI. At the same time, there are also cases where AI is being utilized in audits undertaken to detect violations of the Antimonopoly Act. In recent years, efforts to ensure proper price pass-through in response to rising labor and other costs have gained importance. Compliance initiatives related to Antimonopoly Act violations other than cartels and bid-rigging have also become increasingly significant.
In this study, we consider it important to gather and analyze information on how enterprises are responding to the latest developments, notably the use of algorithms and AI, as well as the proper price pass-through in response to rising labor and other costs, and actions related to Antimonopoly Act violations other than cartels and bid-rigging. Based on the analysis, we intend to propose measures to further enhance the effectiveness of Antimonopoly Act compliance. These aspects are considered crucial in our approach. In addition, we plan to revise the “Guide for the Design and Implementation of an Effective Antimonopoly Act Compliance Program” based on the results of the study.
We plan to conduct a web questionnaire targeting companies listed on the Tokyo Stock Exchange Prime Market from early October to mid-November. We sincerely hope that you will understand the purpose of this survey and kindly provide your cooperation.
Please note that this matter is being handled by the General Affairs Division of the Economic Affairs Bureau.
Commemorating the 25th Anniversary of the Japan-U.S. Competition Cooperation Agreement
This agreement was signed in 1999 and marks its 25th anniversary this year. The meeting was held in Washington, D.C., and was attended by JFTC Commissioner Reiko Aoki, the Justice Department’s Antitrust Division Assistant Attorney General Jonathan Kanter and Federal Trade Commission (FTC) Commissioner Alvaro Bedoya. In addition to reflecting on the cooperative relationship to date, both sides confirmed their undertakings to continue working together on future competition law challenges.
The JFTC views this as a highly meaningful opportunity to reaffirm the cooperative relationship between Japan and the U.S. in the field of competition law and continues our close collaboration with the United States to ensure the effective enforcement of competition laws and the fostering of a healthy market environment in both countries.
（Tentative translation）
