September 2, 2026
Japan Fair Trade Commission
Thank you for joining us again today. I have two points to begin with.
FY 2027 Estimate Request
First, I would like to explain the JFTC’s budget request for FY 2027.
[Budget]
The total amount of the JFTC’s budget request for FY 2027 is 14,855 million yen, an increase of 1,710 million yen from the previous year’s initial budget.
In January this year, the JFTC published a statement entitled “Proactive Development of Competition Policy for Promotion of Innovation.” Under the following three pillars, the JFTC will steadily implement various measures:
● “Strict Law Enforcement” against violations;
● “Ensuring a Fair Trading Environment” by ensuring fair transactions; and
● “Promoting a Competitive Market Environment” through dialogue with stakeholders, including relevant businesses and consumers.
In addition, Japan’s Growth Strategy, which was approved by the Cabinet in July this year, calls for “Further Promoting Price Pass-through and Fair Trading Practices” in order to “Develop an Environment for Wage Increases.” Our budget request reflects these policy directions.
We have organized our budget requests by focused areas. The main requests are as follows.
First, regarding “Strict Law Enforcement,” which is a fundamental mission of the JFTC, we are requesting 533 million yen for expenses related to strict enforcement against price-fixing cartels, bid rigging, and other violations.
Second, regarding “Ensuring a Fair Trading Environment by Ensuring Fair Transactions,” we are requesting 2.186 billion yen to:
In addition, Japan’s Growth Strategy, which was approved by the Cabinet in July this year, calls for “Further Promoting Price Pass-through and Fair Trading Practices” in order to “Develop an Environment for Wage Increases.” Our budget request reflects these policy directions.
We have organized our budget requests by focused areas. The main requests are as follows.
First, regarding “Strict Law Enforcement,” which is a fundamental mission of the JFTC, we are requesting 533 million yen for expenses related to strict enforcement against price-fixing cartels, bid rigging, and other violations.
Second, regarding “Ensuring a Fair Trading Environment by Ensuring Fair Transactions,” we are requesting 2.186 billion yen to:
● steadily enforce the SME Transactions Act and other relevant laws and regulations, and respond strictly and swiftly to abuses of a superior bargaining position under the Antimonopoly Act, violations of the SME Transactions Act, violations of the “Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators” (Freelance Act), and other misconduct; and
● promote awareness and understanding of the rules under the SME Transactions Act and other relevant laws and regulations among businesses through continued public outreach, consultations, and other efforts, thereby preventing violations before they occur.
For these initiatives, we will also utilize the “Strong and Prosperous Japan Investment Framework.” Through these measures, we intend to further strengthen our efforts to ensure fair business practices.
Third, regarding “Promoting a Competitive Market Environment through Dialogue in Digital and Other Sectors,” we are requesting 456 million yen to conduct fact-finding surveys in various sectors, including digital markets, and consider and make recommendations to improve business practices, as well as to effectively enforce the Mobile Software Competition Act and actively conduct public outreach.
[New Organization and the Number of Officials]
Next, regarding the JFTC’s organizational structure and the number of officials, Japan’s Growth Strategy calls for a fundamental strengthening of the JFTC’s organizational capacity, including its regional offices. Our requests also reflect these policy directions.
To fulfill the JFTC’s mission of contributing to economic growth and prosperous lives for the people through competition policy, we believe it is necessary to reorganize and strengthen our structure, including at the bureau level, in line with the three pillars I mentioned earlier: “Promoting a Competitive Market Environment,” “Ensuring a Fair Trading Environment,” and “Strict Law Enforcement.” We also need to strengthen our regional offices so that we can implement our policies effectively throughout Japan.
Accordingly, we are requesting to reorganize the current structure of one Secretariat and two Bureaus into one Secretariat and three Bureaus, and to reorganize the current regional offices and branches into Regional Bureaus and Branch Bureaus. We are also requesting the establishment and restructuring of other necessary organizational units, as well as an increase of 38 officials.
Let me explain our requests regarding organizational structure and the number of officials in a little more detail. First, regarding the three-bureau structure, we plan to establish a new “Economic Affairs Bureau,” which will be responsible for the enforcement of the Mobile Software Competition Act and other matters, and a new “Trade Practices Bureau,” which will be responsible for the enforcement of the SME Transactions Act, the Freelance Act, and other matters. Together with the existing Investigation Bureau, these will form a three-bureau structure.
In addition, for the headquarters, we are requesting the establishment of a new Senior Planning Officer in the General Affairs Division of the Economic Affairs Bureau, responsible for digital markets, and a new Senior Investigator in the Investigation Bureau, responsible for abuses of a superior bargaining position and related matters. We are also requesting an increase of 22 officials to facilitate price pass-through and for other related initiatives.
Next, regarding our regional organizations, we plan to reorganize the five Regional Offices nationwide into Regional Bureaus and the two Branch Offices into Branch Bureaus.
In addition, although these are, strictly speaking, personnel posts rather than organizational units, we are requesting the establishment of a new Senior Officer for Fair Transactions in each of the Hokkaido and Tohoku Offices, as well as a new Investigation Supervisor in the Kyushu Office. We are also requesting an increase of 16 officials to facilitate price pass-through and for other related initiatives. The names of the bureaus and positions I have just mentioned are all provisional.
The establishment of new bureaus will be the first since the JFTC transitioned to the General Secretariat system 30 years ago, in 1996. The reorganization of the Regional Offices will also mark a significant change, as these offices have been established successively since 1948, nearly 80 years ago. As these changes will require amendments to the Antimonopoly Act, we will make every effort to explain them thoroughly and gain the understanding of those concerned.
These are the main points of the JFTC’s budget request for FY 2027.
Caution Against Cartel Conduct Amid Rising Prices
Second, I would like to discuss the JFTC’s efforts to address cartels amid rising prices.
In recent years, prices for a wide range of goods and services have been rising due to a combination of factors, including higher raw material costs, labor costs, and logistics costs. More recently, since July, the pace of price increases has accelerated further, reflecting factors such as higher packaging material costs and rising fuel prices resulting from the increase in crude oil prices amid heightened tensions in the Middle East.
These widespread price increases are having a significant impact on people’s daily lives. According to media reports, more than 4,000 food and beverage products were subject to price increases for deliveries beginning yesterday, September 1, and many more products are expected to see price increases in October, when a large number of price revisions are scheduled.
For businesses to continue operating and grow, they need to maintain the quality of their goods and services and secure the resources necessary for wage increases, capital investment, and other purposes. Reflecting increased costs in prices is therefore a normal part of a market economy, and it is important to facilitate appropriate price pass-through throughout the supply chain.
However, price is an important means of competition. Even when costs are rising, each business must make its pricing decisions independently, based on its own costs, business strategy, and other relevant factors.
From the perspective of the JFTC and competition policy, raising prices is neither good nor bad in itself. As a matter of principle, each business should independently decide whether, and to what extent, to pass on increased costs to its prices. Our role is to address conduct that interferes with such independent decision-making or seeks to avoid competition.
If businesses agree among themselves on prices or the timing of price increases, such conduct would raise issues under the Antimonopoly Act as a price cartel. When costs are rising, increasing their own selling prices is likely to become an important management issue for many businesses. We would therefore like to remind businesses once again to exercise particular care to ensure that they do not engage in cartel conduct.
The JFTC will take strict action against cartel conduct. In particular, we will give priority to addressing cartels involving goods and services that are closely related to people’s daily lives.
Even if raising selling prices is a common management challenge faced by many businesses, cartel conduct is not permissible. To reiterate this message broadly, yesterday the JFTC posted on its official social media account a message stating that price cartels that take advantage of rising prices will not be tolerated. In addition, as the trend toward price increases is expected to intensify again from September through October, we plan to communicate this message on several occasions through social media and various other advertising channels.
The fundamental rule is simple: businesses must not engage in cartels. We would like businesses that see this message to take the opportunity to reassess whether they are conducting their business activities in accordance with this fundamental principle. If, as a result, they identify any conduct that may constitute a cartel, we urge them to cease such conduct promptly. We also encourage them to actively consider using the leniency program and voluntarily reporting the conduct to the JFTC.
To reiterate, if the JFTC becomes aware of cartel conduct, we will take strict enforcement action to address it.
（Tentative translation）
For these initiatives, we will also utilize the “Strong and Prosperous Japan Investment Framework.” Through these measures, we intend to further strengthen our efforts to ensure fair business practices.
Third, regarding “Promoting a Competitive Market Environment through Dialogue in Digital and Other Sectors,” we are requesting 456 million yen to conduct fact-finding surveys in various sectors, including digital markets, and consider and make recommendations to improve business practices, as well as to effectively enforce the Mobile Software Competition Act and actively conduct public outreach.
[New Organization and the Number of Officials]
Next, regarding the JFTC’s organizational structure and the number of officials, Japan’s Growth Strategy calls for a fundamental strengthening of the JFTC’s organizational capacity, including its regional offices. Our requests also reflect these policy directions.
To fulfill the JFTC’s mission of contributing to economic growth and prosperous lives for the people through competition policy, we believe it is necessary to reorganize and strengthen our structure, including at the bureau level, in line with the three pillars I mentioned earlier: “Promoting a Competitive Market Environment,” “Ensuring a Fair Trading Environment,” and “Strict Law Enforcement.” We also need to strengthen our regional offices so that we can implement our policies effectively throughout Japan.
Accordingly, we are requesting to reorganize the current structure of one Secretariat and two Bureaus into one Secretariat and three Bureaus, and to reorganize the current regional offices and branches into Regional Bureaus and Branch Bureaus. We are also requesting the establishment and restructuring of other necessary organizational units, as well as an increase of 38 officials.
Let me explain our requests regarding organizational structure and the number of officials in a little more detail. First, regarding the three-bureau structure, we plan to establish a new “Economic Affairs Bureau,” which will be responsible for the enforcement of the Mobile Software Competition Act and other matters, and a new “Trade Practices Bureau,” which will be responsible for the enforcement of the SME Transactions Act, the Freelance Act, and other matters. Together with the existing Investigation Bureau, these will form a three-bureau structure.
In addition, for the headquarters, we are requesting the establishment of a new Senior Planning Officer in the General Affairs Division of the Economic Affairs Bureau, responsible for digital markets, and a new Senior Investigator in the Investigation Bureau, responsible for abuses of a superior bargaining position and related matters. We are also requesting an increase of 22 officials to facilitate price pass-through and for other related initiatives.
Next, regarding our regional organizations, we plan to reorganize the five Regional Offices nationwide into Regional Bureaus and the two Branch Offices into Branch Bureaus.
In addition, although these are, strictly speaking, personnel posts rather than organizational units, we are requesting the establishment of a new Senior Officer for Fair Transactions in each of the Hokkaido and Tohoku Offices, as well as a new Investigation Supervisor in the Kyushu Office. We are also requesting an increase of 16 officials to facilitate price pass-through and for other related initiatives. The names of the bureaus and positions I have just mentioned are all provisional.
The establishment of new bureaus will be the first since the JFTC transitioned to the General Secretariat system 30 years ago, in 1996. The reorganization of the Regional Offices will also mark a significant change, as these offices have been established successively since 1948, nearly 80 years ago. As these changes will require amendments to the Antimonopoly Act, we will make every effort to explain them thoroughly and gain the understanding of those concerned.
These are the main points of the JFTC’s budget request for FY 2027.
Caution Against Cartel Conduct Amid Rising Prices
Second, I would like to discuss the JFTC’s efforts to address cartels amid rising prices.
In recent years, prices for a wide range of goods and services have been rising due to a combination of factors, including higher raw material costs, labor costs, and logistics costs. More recently, since July, the pace of price increases has accelerated further, reflecting factors such as higher packaging material costs and rising fuel prices resulting from the increase in crude oil prices amid heightened tensions in the Middle East.
These widespread price increases are having a significant impact on people’s daily lives. According to media reports, more than 4,000 food and beverage products were subject to price increases for deliveries beginning yesterday, September 1, and many more products are expected to see price increases in October, when a large number of price revisions are scheduled.
For businesses to continue operating and grow, they need to maintain the quality of their goods and services and secure the resources necessary for wage increases, capital investment, and other purposes. Reflecting increased costs in prices is therefore a normal part of a market economy, and it is important to facilitate appropriate price pass-through throughout the supply chain.
However, price is an important means of competition. Even when costs are rising, each business must make its pricing decisions independently, based on its own costs, business strategy, and other relevant factors.
From the perspective of the JFTC and competition policy, raising prices is neither good nor bad in itself. As a matter of principle, each business should independently decide whether, and to what extent, to pass on increased costs to its prices. Our role is to address conduct that interferes with such independent decision-making or seeks to avoid competition.
If businesses agree among themselves on prices or the timing of price increases, such conduct would raise issues under the Antimonopoly Act as a price cartel. When costs are rising, increasing their own selling prices is likely to become an important management issue for many businesses. We would therefore like to remind businesses once again to exercise particular care to ensure that they do not engage in cartel conduct.
The JFTC will take strict action against cartel conduct. In particular, we will give priority to addressing cartels involving goods and services that are closely related to people’s daily lives.
Even if raising selling prices is a common management challenge faced by many businesses, cartel conduct is not permissible. To reiterate this message broadly, yesterday the JFTC posted on its official social media account a message stating that price cartels that take advantage of rising prices will not be tolerated. In addition, as the trend toward price increases is expected to intensify again from September through October, we plan to communicate this message on several occasions through social media and various other advertising channels.
The fundamental rule is simple: businesses must not engage in cartels. We would like businesses that see this message to take the opportunity to reassess whether they are conducting their business activities in accordance with this fundamental principle. If, as a result, they identify any conduct that may constitute a cartel, we urge them to cease such conduct promptly. We also encourage them to actively consider using the leniency program and voluntarily reporting the conduct to the JFTC.
To reiterate, if the JFTC becomes aware of cartel conduct, we will take strict enforcement action to address it.
（Tentative translation）
