Enforcement of Hardcore Cartel in Japan

Abstract

This study examines the historical development and enforcement framework of Japanese Competition Law, with a specific focus on the evolution of competition law principles and the handling of hardcore cartels. Beginning with the period following the Meiji Restoration up to the aftermath of World War II, the transition of Japan’s economic landscape is explored, particularly highlighting the shift from government-controlled industries to a competitive market environment catalyzed by the enactment of the Antimonopoly Act (AMA) in 1974. Influenced by United States antitrust laws, the AMA imposed stringent controls on mergers, prohibited unreasonable economic power disparities, and established the Japan Fair Trade Commission (JFTC) as the primary enforcement body.

An in-depth analysis is provided on the enforcement of hardcore cartels under the AMA, specifically focusing on their criminalization and procedural aspects. The study delves into the limited prosecution of hardcore cartels and the utilization pattern of criminal enforcement strategies. Furthermore, it examines the implications of criminal sanctions, emphasizing the stigma and dishonor associated with individuals involved in anticompetitive activities. Additionally, the study explores and the broad scope of criminal punishment in addressing collaborative efforts.

Through this examination, the study underscores the AMA’s enforcement in fostering a competitive economic landscape while combatting anticompetitive behavior through rigorous enforcement measures.