Competition Law in Japan

Introduction

Competition law in Japan regulates anti-competitive conduct to protect market competition and consumer welfare. The legal framework prohibits anti-competitive agreements, abuse of dominance, and anti-competitive mergers.

Anti-Competitive Agreements

Agreements between competitors that restrict competition are prohibited, including price-fixing, market-sharing, bid-rigging, and output restrictions.

Abuse of Dominance

Firms with substantial market power are prohibited from abusing their position. Abuse may include predatory pricing, refusal to supply, tying arrangements, and exclusive dealing.

Merger Control

Mergers that would substantially lessen competition are subject to review. Parties must notify the Japan Fair Trade Commission (JFTC) of proposed mergers above specified thresholds.

Enforcement

Competition authorities have powers to investigate, impose fines, require remedies, and in some cases bring criminal proceedings. Private enforcement through damages actions is also available.

Conclusion

Competition law continues to evolve in response to digital markets, with new theories of harm being developed for platform economics.