July 29, 2026
Japan Fair Trade Commission
I had planned to speak about two topics today, but before turning to them, I would like to say a few words about yesterday’s earthquake.
I would like to extend my heartfelt sympathies to all those affected by yesterday’s earthquake in Kumamoto Prefecture.
To help businesses in the affected areas continue their operations, the JFTC will provide the necessary information on its website regarding the application of the Antimonopoly Act to recovery and reconstruction initiatives. In the affected areas, businesses may need to coordinate and cooperate with other businesses in areas such as procuring supplies and providing services. Businesses with concerns about whether such arrangements may raise issues under the Antimonopoly Act are encouraged to consult the JFTC. The JFTC will continue to respond appropriately, taking into account the circumstances in the affected areas.
Fact-Finding Survey on Transactions between Large-Scale Retailers and Suppliers
Let me now turn to the two topics I had originally planned to discuss. First, I would like to speak about the “Fact-Finding Survey on Transactions between Large-Scale Retailers and Suppliers,” which will begin tomorrow, July 30.
In transactions between large-scale retailers, such as supermarkets and drugstores, and their suppliers, large-scale retailers may use their buying power in ways that disadvantage suppliers, including by requiring suppliers to provide unjust economic benefits or by making unjustified returns of goods.
To address these concerns, in 2005 the JFTC established the “Designation of Specific Unfair Trade Practices by Large-Scale Retailers Relating to Trade with Suppliers,” commonly referred to as the large-scale retailers notification, under the Antimonopoly Act. The notification specifies conduct by large-scale retailers toward their suppliers that is prohibited as unfair trade practices. The JFTC has also conducted fact-finding surveys on an ongoing basis and taken other measures to prevent large-scale retailers from abusing their superior bargaining position.
The JFTC published its most recent fact-finding survey report on transactions between large-scale retailers and suppliers in January 2018. Since then, the trading environment between large-scale retailers and suppliers has changed significantly due to a range of developments, including changes in the economic environment, such as rising raw material prices and labor costs, and the diversification of sales promotion methods, including the use of social media and digital advertising. In light of these changes, the terms and conditions of transactions between large-scale retailers and suppliers, as well as the allocation of related costs, are also likely to have changed.
Against this backdrop, the JFTC has decided to conduct this fact-finding survey to gain an up-to-date understanding of transactions between large-scale retailers and suppliers, including whether any practices that may raise concerns under the regulations on abuse of superior bargaining position are taking place, and to help prevent such abuse.
Beginning tomorrow, July 30, the JFTC will conduct an online questionnaire survey covering approximately 1,200 retailers and 31,000 suppliers. The JFTC will send letters requesting their cooperation with the survey, and we encourage all businesses contacted to actively participate by submitting their responses.
Following the online questionnaire survey, the JFTC will conduct interviews with relevant businesses and take other necessary steps before publishing the survey results. To help prevent violations, the JFTC also plans to warn businesses where conduct that could potentially raise concerns under the Antimonopoly Act is identified.
For further details about the survey, please contact the Office of Surveys on the Prevention of Abuse of Superior Bargaining Position, which is responsible for conducting the survey.
Summary of the 233rd Antimonopoly Meeting
I would also like to discuss one more topic: the summary of the 233rd Antimonopoly Meeting, which was held on June 30 this year.
The Antimonopoly Meeting is held regularly as a forum for exchanging views with experts from various fields, including academics, representatives of industry, consumer organizations, and small and medium-sized enterprise organizations, in order to promote competition policy effectively and appropriately in response to changes in Japan’s economy. A summary of the comments and views expressed at each meeting is published following the meeting.
At the first Antimonopoly Meeting of FY2026, the General Secretariat provided explanations on three agenda items, including “Enforcement of the Antimonopoly Act in FY2025.” From the summary of the proceedings released today, I would like to share some of the main comments and views expressed on each item.
Regarding the first agenda item, “Enforcement of the Antimonopoly Act in FY2025,” we received a question concerning the upward trend in the number of measures taken against price-fixing cartels, including whether inflation or other factors may have contributed to an increase in cartel activity. In response, we explained that, even when prices are rising and it is difficult for companies to pass on higher costs, each company must decide independently whether to raise prices and how to conduct price negotiations. Competitors are not permitted to coordinate the timing or scale of price increases. We also explained that the JFTC takes strict action when it obtains information about such conduct, and that the increase in the number of measures taken is considered to be the result of conducting case investigations based on enforcement priorities.
Regarding the second agenda item, “Initiatives to Promote Fair Transactions in FY2025,” we received a comment concerning the fact that only two voluntary reports had been submitted under the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators (Freelance Act), stating that the number seemed very low even considering that the system had only recently been introduced. In response, we explained that the incentives for voluntary reporting are designed in the same way under both the Freelance Act and the SME Transactions Act. However, as awareness of the system may still be insufficient, the JFTC intends to make further efforts to raise awareness.
Regarding the third agenda item, the “Fact-Finding Survey on Measures Taken by Procuring Entities to Prevent Bid Rigging Involving Procurement Officials (FY2026),” we received a question about the barriers preventing local governments from establishing independent oversight bodies, in connection with the finding that only 8.7% of local governments with populations of less than 50,000 had established such bodies, including bid monitoring committees, to help ensure fairness in bidding and contracting procedures.
In response, we explained that a lack of resources, including personnel, is likely to be one reason. We also noted that insufficient awareness among local governments of the importance of compliance may be another significant barrier to establishing such bodies.
The JFTC intends to continue promoting competition policy effectively and appropriately, taking into account the comments and views expressed at this meeting.
（Tentative translation）
