Japan

The JFTC is an independent administrative commission under the Prime Minister. It has investigation, adjudication, and surcharge imposition powers. Criminal cases are referred to the Prosecutor-General.

AMA Article 3 prohibits unreasonable restraints of trade. Cartels (price fixing, bid rigging, market allocation) are subject to surcharges of 10% of affected sales for large manufacturers. Criminal penalties available for serious cartel conduct.

Vertical agreements may constitute unfair trade practices under AMA Article 19. Designation of unfair trade practices covers RPM, exclusive dealing, and tying. Block exemption for certain joint activities.

AMA Article 3 prohibits private monopolisation (exclusionary and control types). Abuse of superior bargaining position is separately regulated under Article 19 as unfair trade practices, relevant to platform economy cases.

Mandatory pre-notification for mergers exceeding domestic sales thresholds (combined >JPY 40bn and target >JPY 4bn). 30-day Phase 1 review, followed by detailed Phase 2 if issues identified (maximum 120 days extendable).

Leniency programme established in 2006, revised in 2020. Up to 5 applicants eligible for surcharge reductions. First applicant receives full immunity, subsequent applicants receive decreasing reductions. Collaboration-based reductions also available.

Commitment procedure introduced in 2018 AMA reform. Undertakings can propose remedies to address JFTC competition concerns without formal infringement finding. JFTC has used commitments in several digital platform cases.

Administrative surcharges (10% of affected sales for large manufacturers, lower rates for others). Criminal penalties: imprisonment up to 5 years, fines up to JPY 500 million for corporations. Individuals face fines up to JPY 5 million.

Transparency Act for Specified Digital Platforms (2020) imposes transparency obligations on large platforms. Mobile Software Competition Act (2024) targets app store restrictions, payment systems, and browser defaults. JFTC active in digital markets enforcement.

JFTC is the primary authority. Sector regulators (MIC for telecoms, FSA for financial services) cooperate but JFTC retains general jurisdiction. Designated sectors may have concurrent regulatory oversight.

JFTC has administrative investigation powers including on-site inspections, document seizure, and witness questioning. Criminal investigations conducted jointly with prosecutors. Digital evidence collection capabilities.

Private damages claims available under AMA Article 25 (strict liability based on JFTC finding) and general tort law. Injunctive relief available under Article 24. However, private enforcement remains relatively uncommon compared to the US and EU.

JFTC has cooperation agreements with the US, EU, Canada, Australia, South Korea, and others. Active member of ICN (hosted annual conference), OECD Competition Committee, and APEC. Regular coordination on multi-jurisdictional merger reviews.

Focus on digital platform practices (Google, Apple app store investigations). Implementation of Mobile Software Competition Act 2024. Continued cartel enforcement in construction and manufacturing. Updated merger review approach for data-intensive transactions.