Japan's Antimonopoly Act prohibits: private monopolization (Art. 3 first half), unreasonable restraint of trade/cartels (Art. 3 second half), and unfair trade practices (Art. 19). Cartel types: price-fixing, bid-rigging, market allocation. Surcharges (Art. 7-2): 10% of sales for cartels/bid-rigging, 6% for exclusionary monopolization, 1% for abuse of superior bargaining position. Leniency program (Art. 7-4): first reporter gets full immunity, second 20% reduction. Criminal penalties: up to 5 years imprisonment/¥5M fine for individuals, ¥500M for corporations (Art. 89, 95). Strict liability for damages (Art. 25).
Antitrust and Cartel Regulation in Japan: Violations and Penalties
Key Takeaways
- ✓Cartels and bid rigging face surcharges based on a percentage of sales
- ✓The leniency program grants immunity to the first company to self-report
- ✓Criminal penalties including imprisonment and fines may also apply
- ✓The Fair Trade Commission holds authority to investigate and impose penalties
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