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Price Signaling from Competition Law Perspective - (2021.10)

Price Signaling from Competition Law Perspective - (2021.10)

Price Signaling from Competition Law Perspective - In the context of unreasonable restraint of trade under the Anti-Monopoly Act (AMA) based on discussions and precedents in the U.S. and Europe(2021.10)

IKEDA, Tsuyoshi(Founding Partner, Ikeda & Someya and Former Visiting Researcher of the Competition Policy Research Center)
TAKAMIYA, Yusuke (Partner, Mori Hamada & Matsumoto and Former Visiting Researcher of the Competition Policy Research Center)

Abstract
 
Price signaling has been discussed as a type of concerted practice in antitrust/competition law. Price signaling has interesting nature: It is a kind of conducts that may affect competition among competitors on one hand. It has no interactive communication nor meeting of minds among competitors on the other hand.

This discussion paper examines major precedents in Europe and the United States and analyze how price signaling has been treated in the enforcement of antitrust/competition law in these jurisdictions. Through this analysis, this discussion paper proposes an idea of how price signaling should be analyzed in the existing rules of unfair restraint of trade (rules concerning concerted practice among competiors in Japan).

The preliminary idea offered by this discussion paper for analyzing price signaling under the Anti-Monopoly Act in Japan is that the meeting of minds can be presumed when price signaling is found even without reasonable grounds for doing so other than to affect competition among competitors, followed by a subsequent parallel conduct(s) among competitors.
 

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