Antimonopoly Act (Dokusen Kinshi Hō)
The Antimonopoly Act (Dokusen Kinshi Hō) is Japan’s primary competition law statute. Enacted in 1947 during the Allied occupation, the Act prohibits monopolisation, unreasonable restraint of trade, and unfair trade practices. The Japan Fair Trade Commission (JFTC) is responsible for enforcement. The Act has been substantially amended to strengthen enforcement, including the introduction of a leniency programme, increased maximum penalties, and the extension of criminal sanctions.
Legal area: Law prohibiting anti-competitive practices and promoting market competition.
Year enacted: 1947
Full text: https://elaws.e-gov.go.jp/document?lawid=japan-antimonopoly-act
Key Provisions
- Chapter I: General provisions (purpose, definitions)
- Chapter II: Prohibited acts (monopolisation, cartels, unfair trade practices)
- Chapter III: Review of business concentration (merger control)
- Chapter IV: Procedures (JFTC investigation, surcharge orders)
- Chapter V: Criminal penalties (imprisonment up to 10 years, fines up to ¥1 billion)
- Chapter VI: Private enforcement (damages actions)
- Chapter VII: Leniency programme (immunity for first applicant)
Significance
The Antimonopoly Act is the cornerstone of Japan’s competition law framework. The JFTC has strengthened enforcement in recent years, including increased penalties for cartel activity and bid rigging. The leniency programme has been effective in detecting cartels. Japan has been working to improve merger review procedures and cooperation with international competition authorities. The Act’s provisions on unfair trade practices have been used to address digital platform dominance and the power imbalance between platforms and business users.