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International Cartel Enforcement of the JFTC - Developments and Future-. NAMBU Toshiyuki 南部 利之 Deputy Secretary General for International Affairs Japan Fair Trade Commission (JFTC) September 16 th , 2013, Beijing, China.
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International Cartel Enforcement of the JFTC • - Developments and Future- NAMBUToshiyuki 南部 利之 Deputy Secretary General for International Affairs Japan Fair Trade Commission (JFTC) September 16th , 2013, Beijing, China The view stated here is my own and does not necessarily reflect the view of the JFTC.
Overview • International Cartel Enforcement of the JFTC (Past ) 2. JFTC’s efforts to strengthen its enforcement against international cartels • International Cartel Enforcement of the JFTC (Present) 4. Future Trends of the JFTC’s International Cartel Enforcement 5. Implications for the business
1.InternationalCartelEnforcement of the JFTC (Past) • Artificialgraphiteelectrode case (1998) • Vitamins case (2000) • PrecededbyUS&EUauthoritiesemployingleniencyprogram;LeniencyprogramwasnotavailableinJapanat that time. • NocoordinationforsimultaneousdawnraidswithotheragenciesinJFTCinvestigation. • ViolatorsincludingJapanesecompanieswereexposedtohugefinesinUS&EU; OverinJapan,only warningsduetolackofevidence.
2.JFTC’seffortstostrengthenitsenforcementagainstinternationalcartels2.JFTC’seffortstostrengthenitsenforcementagainstinternationalcartels • LeniencyprogramineffectsinceJanuary2006 Allowandexpediteenforcementcoordinationwithforeign competition authorities atastagepriortoinvestigation launch • Organizational reinforcementforbetterabilitytocrackdowninternationalcartels e.g.establishInternationalCartelInvestigationUnit (2010) • ContinuingeffortstoenhanceJFTC’spresenceinthe international dimension e.g. activecontributiononvariousoccasionssuchas OECD, ICN and APEC
3.InternationalCartelEnforcement of the JFTC (Present) • Marinehoses case(2008) • SimultaneousdawnraidwithforeignauthoritiessuchasUSandEU • First-timecease-and-desistordersagainstforeigncompaniesinvolvedin internationalcartel • Cathode-raytubes case(2009) • SimultaneousdawnraidwithforeignauthoritiessuchasUSandEU • First-timesurchargepaymentordersagainstforeigncompaniesinvolved ininternationalcartel • Automobileparts case (2012&2013) • SimultaneousdawnraidswithforeignauthoritiessuchasUS,EUand Canada • Highest eversurchargeagainstasinglecompany(approx.9.6billionJPY) • Manytypesofautopartsrespectivelystill subjecttomultijurisdictional investigations
4.Future Trends of JFTC’sInternationalCartelEnforcement • Continuinglystriveforactivecrackdownoninternationalcartels →InauguralmessagefromChairmanSugimotoinMarch2013 • “Must continue stringently and actively countering price-fixing cartels which has a serious impact on the lives of people” • “Need to make rightcontributions as Japanese competition authorityin cooperating/coordinating with overseas authorities for addressing international cartels” • Well-establishedleniencyprograminJapan Effectivetooltorevealinternationalcartels < The number of LeniencyApplications>
5.Implications for the business • Nodoubtthatdetectingandsanctioninginternationalcartelswillbemoreand morespread and intensified. → No“CartelHeaven”intheworld • Businessside requiredproperrecognitionofandurgentresponsetochangingcircumstancessurroundinginternational cartels . • Companiesarestillinmuchneedofcomplianceeffortsintheglobalcontext. • Recently,frequentconvictionsofinternationalcartelsinvolvingJapanesecompanies(e.g.marinehoses, LCDpanels, aircargo, autoparts) • The JFTC has been encouraging AMA compliance in companies, considering that the stringent and active enforcement of the AMA and advocacy and supports for initiatives taken by companies related to the AMA compliance as “a pair of wheels” in competition policy. • Prompt decision to apply leniency for all of the related competition authorities.
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