(1) PURPOSE OF THE LAW AND SYSTEM
By prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, by preventing excessive concentration of economic power and by eliminating unreasonable restraint of production, sale, price, technology and the like, and all other unjust restriction of business activities through combinations, agreements and otherwise, aims to promote free and fair competition, to stimulate the creative initiative of entrepreneurs, to encourage business activities of enterprises, to heighten the level of employment and people's real income, and thereby to promote the democratic and wholesome development of the national economy as well as to assure the interests of consumers in general.

(2) OUTLINE OF THE LAW AND SYSTEM
The Act, provides for the prohibition of private monopolization or unreasonable restraint of trade (Article 3), the prohibition of particular international agreements or contracts (Article 6), the prohibition of particular activities of trade associations (Article 8), and the prohibition of unfair trade practices (Article 19).
The Act, in order to restrict the business combinations, also provides for: the restriction of establishment of a company which may cause excessive concentration of economic power (Article 9), restrictions on stockholding (Articles 10 and 14), the limitation of voting rights of bank or insurance company (Article 11), the restriction of particular interlocking directorates (Article 13), the restriction of particular mergers (Article 15), the restriction of particular division (Article 15-2), and restrictions on particular acquisitions of business (Article 16).
Otherwise the Act prescribes measures against monopolistic situations (Article 8-4).
Furthermore, the Act prescribes a notification system for a trade association (Article 8).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Ordinance of the ACT Concerning Prohibition of Privete Monopolization and Maintenance of Fair Trade
Rules on Administrative Investigations by the Fair Trade Commission
Rules on Hearing

Rules on Reporting and Submission of Materials Regarding Immunity From or Reduction of Surcharges
Rule on Application, Notification and Filing of Permission Stipulated in Sections 9 to 16 of Act Concerning Prohibition of Private Monopolization and Maintenance of Fair Trade

(4) OUTLINE OF THE CONTROL
1) Items Covered
Entrepreneur (Persons engaging in commercial, industrial and financial business and other business)

2) Outline of the Control
i. Prohibition of private monopolization
ii. Prohibition of unreasonable restraint of trade (cartel)
iii. Prohibition of unfair trade practices
iv Merger Regulation

(5) HIGHLIGHTS OF THE RECENT AMENDMENT
In April 2005, the Antimonopoly Act was amended with the main features of revision of the surcharge system, Introduction of a leniency program, Revision of hearing procedures, etc.

(1) Increasing the surcharge rate
(a) Manufacturers, etc.: Large-sized enterprises: 6% => 10%
Small and Medium-sized enterprises (SMEs): 3% => 4%
Wholesalers: Large-sized enterprises: 1% => 2%
SMEs: 1% (no change)
Retailers: Large-sized enterprises: 2% => 3%
SMEs: 1% => 1.2%
(b) Expanding the scope of conduct subject to the surcharge system
(c) Reducing a surcharge rate of 20% of the normal respective surcharge rate on those enterprises whose duration of violation is short
(d) Imposing a surcharge rate of 150% of the normal respective surcharge rate on those enterprises that repeat violations.
(e) Introducing an adjustment clause in situations where criminal fines exist.

(2) Introduction of a leniency program
Immunity from or reduction in surcharge payment shall be applied to enterprises that meet statutory conditions (e.g. enterprises committing unreasonable restraints of trade shall voluntarily disclose the existence of violations and provide related information to the JFTC and cease the violation after initiation of an investigation.).

(3) Introduction of compulsory measures for criminal investigations, etc.

(4) Revision of the penalty rule
- Compulsory measures for criminal investigations shall be introduced where a criminal accusation is being pursued.
- Penalties against corporations that are in contravention of elimination orders shall be strengthened
- Penalties against interference with inspection, etc. shall be strengthened.

(5) A system shall be introduced so that the surcharge payment order does not lose effect in cases where hearing procedures have been initiated.

(6) The provision that requires a report on parallel price increases shall be abolished.

(7) The provision shall be prescribed in the supplementary clause that the revised Antimonopoly Act shall be reviewed within two years after the amendment takes effect.

(6) REFERENCE INFORMATION
(Liaison Office for Further Information)
General Affairs Division, Secretariat, Fair Trade Commission
Tel: 03-3581-5471(Representative) http://www.jftc.go.jp/