October 7, 2026
Japan Fair Trade Commission
The Study Group on Business Transactions
Today, I would like to talk about the first meeting of the third phase of the Study Group on Business Transactions, which we held at 10 a.m.
To help create a trading environment in which appropriate price pass-through becomes an established practice throughout the entire supply chain, we jointly held the first phase of the Study Group on Business Transactions with the Small and Medium Enterprise Agency from July to December 2024. The discussions focused primarily on the Subcontract Act, and we published the “Report of the Study Group on Business Transactions.”
Building on these efforts, we held the second phase of the Study Group on Business Transactions from July 2025 to June 2026, with the aim of making appropriate price pass-through an established practice throughout the entire supply chain, including in transactions not covered by the SME Transactions Act. During this phase, we discussed how abuse of superior bargaining position should be regulated, among other issues.
Based on the discussions held during the first and second phases of the Study Group on Business Transactions, the Subcontract Act was amended, and we have worked to establish rules to ensure fair transactions throughout the entire supply chain. These efforts include amendments to the Logistics Special Designations, the establishment of the Payment Notification, and amendments to the Guidelines Concerning Abuse of Superior Bargaining Position under the Antimonopoly Act.
The JFTC and the Small and Medium Enterprise Agency have been working to raise awareness of these rules, while conducting investigations into suspected violations of the SME Transactions Act and follow-up surveys aimed at preventing violations. However, we believe that challenges remain in ensuring fair transactions, particularly as price pass-through continues to lag at the lower tiers of the supply chain.
Against this backdrop, we have decided to hold the third phase of the Study Group on Business Transactions to further promote and firmly establish appropriate price pass-through and fair transactions throughout the entire supply chain. We plan to ask the members of the study group to discuss possible measures to promote compliance with rules designed to ensure fair transactions, make effective price pass-through an established practice, and address business practices that need to be improved.
We held the first meeting of the third phase of the Study Group on Business Transactions today. At the beginning of the meeting, Chair Eiji CHATANI of the JFTC and Shinji WAKAYAMA, Parliamentary Vice-Minister of Economy, Trade and Industry, delivered opening remarks. The secretariat then reviewed past efforts and the current situation regarding price pass-through and fair transactions, and explained how the study group will proceed during this phase. Following this, we held hearings with cross-industry organizations on actual business practices, and the members of the study group discussed the issues raised.
At upcoming meetings, we plan to hold several rounds of hearings with industry associations to gain a better understanding of actual business practices. Based on the findings, the study group will then identify key issues and discuss possible measures to address them.
We plan to publish a summary of the discussions at a later date. For further details on the first meeting of the study group, please contact the Inter-Enterprise Trade Division.
We will continue working to ensure that appropriate price pass-through and fair transactions become firmly established throughout the entire supply chain.
（Tentative translation）
