Clifford Chance

'Knock, Knock…it's the JFTC': Report Issued by the Advisory Panel Regarding the Investigation Procedures of the JFTC Under Japan's Anti-Monopoly Act

31 December 2014

In December 2013 Japan enacted a partially revised Anti-Monopoly Act. Similar to the U.S. Sherman and Clayton Acts, the Japanese Anti-Monopoly Act generally prohibits activities that impede competition. The Anti-Monopoly Act also gives investigative authority to the Japan Fair Trade Commission, including the ability to conduct compulsory on-the-spot inspections akin to dawn-raids conducted by the European Commission or search warrant raids carried out by the U.S. Federal Bureau of Investigation. In relation to the investigative procedures of the JFTC, the revised Anti-Monopoly Act stipulated that the Japanese government would consider implementing procedures to ensure that the targets of investigations can sufficiently defend themselves.

To that end, in the beginning of 2014, the Japanese Minister of State appointed an Advisory Panel on Administrative Investigation Procedures Under the Anti-Monopoly Act to provide expert advice on the procedures that the JFTC should follow. After a series of fourteen meetings, on December 24, 2014, the Advisory Panel issued its report on the recommended investigative procedures of the JFTC.  While the Advisory Panel's report is not binding, companies with operations in Japan should be cognizant of its findings, as these may soon become binding on the JFTC.

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