Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

Notwithstanding the provisions of Article 7-2, paragraph (1), the Japan Fair Trade Commission is not to order an enterprise to pay a surcharge, if the enterprise that is to pay the surcharge pursuant to the provisions of Article 7-2, paragraph (1) falls under both of the following items:

an enterprise that is the first among the enterprises that committed the relevant violation to have individually reported facts and submitted materials regarding the facts of the violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission (excluding when the enterprise reports facts and submits materials on or after the investigation start date (the date on which the measure listed in Article 47, paragraph (1), item (iv) or the measure listed in Article 102, paragraph (1) was first taken; hereinafter the same applies in this Article) (or the date on which the enterprise received an advance notification concerned with the violation if neither of the measures was taken; the same applies in the following item, in the following paragraph) for the case concerned with the violation); and

the enterprise that has not committed the relevant violation since the investigation start date for the case concerned with the violation.

In cases under Article 7-2, paragraph (1), the Japan Fair Trade Commission is to reduce the relevant surcharge before reduction (the surcharge calculated pursuant to the provisions of the preceding two Articles; hereinafter the same applies in this Article and the following Article) by twenty percent of the surcharge before reduction, if the enterprise falls under item (i) and item (v) below, by ten percent of the surcharge before reduction, if the enterprise falls under items (ii) and (v) or items (iii) and (v) below, or by five percent of the surcharge before reduction, if the enterprise falls under items (iv) and (v) below.

the enterprise that is the second among the enterprises that committed the relevant violation to have individually reported facts and submitted materials regarding the facts of the violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission (excluding when the enterprise reports facts and submits materials on or after the investigation start date for the case concerned with the relevant violation);

the enterprise that is the third among the enterprises that committed the violation to have individually reported facts and submitted materials regarding the facts of the violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission (excluding when the enterprise reports facts and submits materials on or after the investigation start date for the case concerned with the relevant violation);

an enterprise that is the fourth or fifth among the enterprises that committed the violation to have individually reported facts and submitted materials regarding the facts of the violation (excluding facts and materials related to the facts already ascertained by the Japan Fair Trade Commission through the report provided in Article 45, paragraph (1), or the measures as provided in paragraph (4) of the Article, or other means; the same applies in the following item) to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission (excluding when the enterprise reports facts and submits materials on or after the investigation start date for the case concerned with the relevant violation);

the enterprise that is the sixth or thereafter among the enterprises that committed the relevant violation to have individually reported facts and submitted materials regarding the facts of the violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission (excluding when the enterprise reports facts and submits materials on or after the investigation start date for the case concerned with the relevant violation); or

an enterprise that has not committed the relevant violation after the investigation start date for the case concerned with the relevant violation.

In cases under Article 7-2, paragraph (1), the Japan Fair Trade Commission is to reduce the relevant surcharge before reduction by ten percent of the surcharge before reduction, if the enterprise falls under item (i) and item (iii) below, or five percent of the surcharge before reduction, if the enterprise falls under items (ii) and (iii):

if the enterprises that reported facts and submitted materials regarding the relevant violation pursuant to the provisions of item (i) of paragraph (1) or items (i) through (iii) of the preceding paragraph number fewer than five, the enterprise that individually reported facts and submitted materials regarding facts of the violation (excluding facts and materials related to the facts already ascertained by the Japan Fair Trade Commission through the measures listed in the items under Article 47, paragraph (1) or provided in Article 102, paragraph (1), or other means; the same applies in the following item) to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission, by the date set in the Rules of the Japan Fair Trade Commission on or after the investigation start date for the case concerned with the relevant violation (limited to when the sum of the enterprise who reported facts and submitted materials pursuant to the provisions of item (i) of paragraph (1) or items (i) through (iii) of the preceding paragraph and the enterprise that reported facts and submitted materials pursuant to the provisions of this item numbers five or fewer, and when the total number of the enterprises who reported facts and submitted materials pursuant to the provisions of this item is three or fewer);

the enterprise that individually reported facts and submitted materials regarding facts of the violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission, by the date set in the Rules of the Japan Fair Trade Commission on or after the investigation start date for the case concerned with the relevant violation (excluding the enterprises that fall under the previous item); or

the enterprise that has not committed the relevant violation after the date of submission of the reports and materials provided in the preceding two items.

If two or more enterprises (limited to when the enterprises are companies) that have violated the provisions of Article 7-2, paragraph (1) have jointly reported facts and submitted materials regarding the facts of the relevant violation to the Japan Fair Trade Commission pursuant to the provisions of the Rules of the Japan Fair Trade Commission, the relevant facts and materials are deemed to have been reported and submitted individually and the provisions of the preceding three paragraphs apply to the two or more enterprises who have reported the facts and submitted materials regarding the facts, as long as the two or more enterprises fall under item (i) below and either item (ii) or (iii) below. In this case, the two or more enterprises are deemed to be a single enterprise for the purposes of the calculation of the number of the enterprises who have reported the facts and submitted the materials provided in paragraph (1), item (i), paragraph (2), items (i) through (iv) and items (i) and (ii) of the preceding paragraph.

that, at the time of the report of the relevant facts and the submission of the materials, the two or more enterprises are related as a subsidiary company, etc. to each other;

that, among the relevant two or more enterprises, the one that committed the violation in concert with another of the two or more enterprises, was related to the other enterprise as a subsidiary company, etc. to each other for the entire period during which it committed the relevant violation in concert with the other enterprise (limited to within ten years preceding the date on which the enterprises reported the relevant facts or submitted the materials);

that a fact that falls under either of the following exists with regard to one of the two or more enterprises that has not committed the violation in concert with another of the relevant two or more enterprises:

the enterprise has transferred all or part of the business involved in the violation to another enterprise of the relevant two or more enterprises or has alienated all or part of the business involved in the violation through a split, and the relevant other enterprise commenced the relevant violation on the date of the relevant transfer or of the split; or

the enterprise has received all or part of the business connected to the violation from another enterprise of the relevant two or more enterprises or has succeeded to all or part of the business connected to the relevant violation through a split, and first committed the violation on the date of the relevant transfer or of the split.

When the Japan Fair Trade Commission receives the report of facts and submission of materials provided in paragraph (1), item (i), paragraph (2), items (i) through (iv), or paragraph (3), item (i) or (ii), the Japan Fair Trade Commission must promptly notify the enterprise that reported the relevant facts and submitted the materials to that effect in writing.

Prior to issuing an order pursuant to the provisions of Article 7-2, paragraph (1) or a notice pursuant to the provisions of the following paragraph or Article 7-7, paragraph (3) to an enterprise that reported facts and submitted materials regarding the fact provided in paragraph (1), item (i), paragraph (2), items (i) through (iv), or paragraph (3), item (i) or (ii), the Japan Fair Trade Commission may additionally request the relevant enterprise to report facts or submit materials regarding the facts of the violation, excluding cases of agreements in paragraph (1) of the following Article (including the agreement which contains the engagement in the acts listed in each of the items of paragraph (2) of the following Article).

If the Japan Fair Trade Commission has decided not to order the payment of a surcharge pursuant to the provisions of paragraph (1), it is to notify the relevant enterprise in writing of that decision at the time it issues an order, pursuant to the provisions of Article 7-2, paragraph (1), to enterprises other than the enterprise regarding the case concerned with the violation committed by the enterprises who fall under the provisions of paragraph (1) (by the time provided in the Rules of the Japan Fair Trade Commission if the Japan Fair Trade Commission does not issue an order pursuant to the provisions).