December 4, 2024
Japan Fair Trade Commission
Today, I would like to explain the following matters: (1) OECD Competition Committee December 2024 Meeting, (2) FY 2024 Draft Supplementary Budget and (3) Launch of the Questionnaire Form Regarding the Case Against Amazon Japan G.K., etc.
OECD Competition Committee December 2024 Meeting
The Organisation for Economic Co-operation and Development (OECD) holds Competition Committee December 2024 meeting in Paris, France, from December 2 to 6. Commissioner Aoki, Mr. Fukamachi, Deputy Secretary General for International Affairs, and another staff member of the JFTC attended the meeting.
The OECD Competition Committee convenes the Competition Committee meeting, the Working Party No. 2 on Competition and Regulation, and the Working Party No. 3 on Co-operation and Enforcement, twice a year, around June and December, respectively. In addition, related meetings are held alongside the Competition Committee meeting around December each year. These include the OECD Global Forum on Competition, which involves both OECD and non-OECD economies, and the High-Level Meeting of Representatives of Asia-Pacific Competition Authorities, where the heads and senior representatives of competition agencies across the Asia-Pacific region gather.
The agenda of the OECD Competition Committee meetings reflects awareness of the member countries at the time. At this meeting, a wide range of topics were discussed. Among these, the JFTC submitted contribution documents and participated in discussions on four topics, including “Competition in the Food Supply Chain” and “Cross-Border Mergers.”
The session on “Competition in the Food Supply Chain” featured lively discussions among competition authorities, joined by academic experts. The discussions centered on whether so-called market failures could be one of the underlying factors behind the recent surge in food prices. With this awareness of the issues, participants also explored the role of competition policy in addressing challenges within the diverse transactions that constitute the food supply chain.
In the same session, Commissioner Aoki from Japan presented cases of AMA violations in the food supply chain investigated by the JFTC. Additionally, as the ICN Coordinator responsible for coordinating and aligning the activities of the International Competition Network (ICN) and the OECD, Commissioner Aoki introduced an outline of the draft report on a special ICN project addressing “Competition Concerns in Agricultural and Food Markets.”
The JFTC intends to continue to actively participate in discussions and make contributions in international frameworks, including the OECD Competition Committee.
FY 2024 Draft Supplementary Budget
I will provide an overview of our draft supplementary budget for FY 2024, which was approved by the Cabinet on November 29.
We requested for a total of 1,625 million yen, including the amount recorded in the lump sum by the Digital Agency.
The main points are as follows:
(1) Strict and Effective Operation of the AMA
We requested 20 million yen to cover the expenses necessary for developing a more cost-effective next-generation forensic data analysis system for investigation, which is scheduled for procurement in FY 2026.
(2) Strengthening the Control of Acts that Unfairly Disadvantage SMEs
We requested 186 million yen to cover the expenses necessary for the following initiatives:
-To conduct prompt surveys on efforts to facilitate smooth price pass-through practices as a follow-up to assess the awareness and implementation of the Guidelines for Labor Costs Pass-through.
-To implement large-scale public awareness campaigns targeting both ordering parties and freelancers regarding the Act on Improvement of Transactions between Freelancers and Undertakings (Freelance Act), which came into effect on November 1 of this year.
- To conduct a market study on the actual trading conditions of creators in the film and animation industries.
(3) Improving the Competitive Environment
We requested 16 million yen to cover the expenses required for hosting a global forum aimed at strengthening international collaboration in preparation for the effective implementation of the Mobile Software Competition Act, which is scheduled to be fully enforced by December 2025.
(4) Reinforcement of Foundations for Operation of Competition Policy
We requested 1,403 million yen to cover the expenses necessary for the following initiatives:
(3) Improving the Competitive Environment
We requested 16 million yen to cover the expenses required for hosting a global forum aimed at strengthening international collaboration in preparation for the effective implementation of the Mobile Software Competition Act, which is scheduled to be fully enforced by December 2025.
(4) Reinforcement of Foundations for Operation of Competition Policy
We requested 1,403 million yen to cover the expenses necessary for the following initiatives:
-Enhancing public outreach efforts by utilizing effective videos and other materials to promote the JFTC’s initiatives on appropriate price pass-through practices, etc.
-Advancing facility preparations to ensure the smooth relocation of the JFTC’s offices, scheduled during FY 2025.
The above is an overview of the supplementary budget request made by the JFTC. We aim to promptly implement these initiatives to contribute to creating an environment that facilitates wage increases for small and medium-sized enterprises and other stakeholders, etc.
Launch of the Questionnaire Form Regarding the Case Against Amazon Japan G.K., etc.
I would like to inform you about the launch of a questionnaire form related to the investigation involving Amazon Japan G.K., as mentioned during last week’s regular press conference.
At the press conference, I explained that Amazon Japan G.K. operates a display space on its website, “Amazon.co.jp,” for listing products eligible for the “Recommended Listings” feature. There are suspicions that the company restricts the business activities of sellers on the platform related to listing products to this space by:
The above is an overview of the supplementary budget request made by the JFTC. We aim to promptly implement these initiatives to contribute to creating an environment that facilitates wage increases for small and medium-sized enterprises and other stakeholders, etc.
Launch of the Questionnaire Form Regarding the Case Against Amazon Japan G.K., etc.
I would like to inform you about the launch of a questionnaire form related to the investigation involving Amazon Japan G.K., as mentioned during last week’s regular press conference.
At the press conference, I explained that Amazon Japan G.K. operates a display space on its website, “Amazon.co.jp,” for listing products eligible for the “Recommended Listings” feature. There are suspicions that the company restricts the business activities of sellers on the platform related to listing products to this space by:
1. Requiring sellers to set the sales prices of their products as “competitive prices,” “reference prices,” or similar terms.
2. Compelling sellers to use a service called “Fulfillment by Amazon” (FBA).
These actions are suspected of restricting the business activities of sellers, potentially violating the Antimonopoly Act. As a result, an investigation has been initiated.
Today, as part of the ongoing investigation into this matter, we have launched a dedicated web questionnaire page on the JFTC’s website. This initiative aims to collect information primarily from enterprises that list their products on “Amazon.co.jp.”
This web questionnaire is available in the middle section of the JFTC’s Japanese website’s homepage. Visitors can access it through the link titled “Request for Comments and Information from Sellers Regarding Suspected Antimonopoly Act Violations by Amazon Japan G.K.,” located on the homepage, and provide their responses to the questionnaire.
We kindly ask respondents to provide contact information, as we may need to ask for more detailed information based on the responses received. Please be assured that any personal information provided, such as names, will be handled with the utmost care to prevent disclosure to third parties, including Amazon Japan G.K., and to ensure that the act of providing information remains confidential. The information and comments collected will be used solely for the purpose of this investigation and will not be utilized for any other purposes. We encourage you to provide candid and specific information.
We would appreciate it if the media could help disseminate information about this questionnaire to a wider audience.
(Tentative translation)
These actions are suspected of restricting the business activities of sellers, potentially violating the Antimonopoly Act. As a result, an investigation has been initiated.
Today, as part of the ongoing investigation into this matter, we have launched a dedicated web questionnaire page on the JFTC’s website. This initiative aims to collect information primarily from enterprises that list their products on “Amazon.co.jp.”
This web questionnaire is available in the middle section of the JFTC’s Japanese website’s homepage. Visitors can access it through the link titled “Request for Comments and Information from Sellers Regarding Suspected Antimonopoly Act Violations by Amazon Japan G.K.,” located on the homepage, and provide their responses to the questionnaire.
We kindly ask respondents to provide contact information, as we may need to ask for more detailed information based on the responses received. Please be assured that any personal information provided, such as names, will be handled with the utmost care to prevent disclosure to third parties, including Amazon Japan G.K., and to ensure that the act of providing information remains confidential. The information and comments collected will be used solely for the purpose of this investigation and will not be utilized for any other purposes. We encourage you to provide candid and specific information.
We would appreciate it if the media could help disseminate information about this questionnaire to a wider audience.
(Tentative translation)
