Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

When the Japan Fair Trade Commission receives the application for consultation regarding the acts listed in the following items from an enterprise that reports facts and submits materials regarding the facts pursuant to the provisions of Article 7-4, paragraph (2), items (i) through (iv) or paragraph (3), item (i) or (ii) (hereinafter referred to in this Article as an "enterprise that made a report and submission"), the Japan Fair Trade Commission is to confer with the enterprise that made a report and submission, and may enter into an agreement on the acts of the enterprise that made a report and submission listed in item (i) below and the acts of the Japan Fair Trade Commission listed in item (ii) below with the enterprise that made a report and submission, pursuant to the provisions of the Rules of the Japan Fair Trade Commission, taking into consideration the content of the fact pertaining to the matters provided in the Rules of the Japan Fair Trade Commission as those contributing to revealing the truth of the case which are obtained from the reported facts or submitted materials or expected to be obtained from the facts or materials reported or submitted by the acts listed in item (i) below or other circumstances:

the following acts:

reporting the facts or submitting the materials which the enterprise that made a report and submission offered, in the consultation, to report or submit to the Japan Fair Trade Commission immediately after the agreement;

reporting the facts, submitting the materials, or consenting to the inspection of the materials of the enterprise that made a report and submission by the Japan Fair Trade Commission (referred to simply as "inspection" in (c) below and in (b) of item (i) of the following paragraph) or conducting other acts at the request of the Japan Fair Trade Commission, regarding the facts or materials obtained from the report of the facts and submission of the materials provided in Article 7-4, paragraph (2), items (i) through (iv) or paragraph (3), item (i) or (ii), or from the acts listed in (a); or

reporting the facts, submitting the materials, or consenting to the inspection, or conducting other acts, at the request of the Japan Fair Trade Commission, regarding the facts revealed by the investigation of the Japan Fair Trade Commission;

reducing the amount gained by multiplication of a rate specified in the relevant agreement (referred to as the "specified rate" in item (ii) of the following paragraph and paragraph (3)) from the surcharge before reduction within the scope of rates provided in (a) or (b) below (referred to as the "upper limit rate" in item (ii) of the following paragraph) according to the category of the enterprises listed in (a) or (b) below:

the enterprise that reported facts and submitted materials regarding the facts provided in items (i) through (iv) of paragraph (2) of the preceding Article: not more than forty percent; or

the enterprise that reported facts and submitted materials regarding the facts provided in item (i) or (ii) of paragraph (3) of the preceding Article: not more than twenty percent.

If the facts or materials obtained from acts listed in item (i) of the preceding paragraph, explained by the enterprise that made a report and submission in the consultation in the paragraph are necessary for prompt revealing the truth of the case, and the enterprise that made a report and submission is found to be likely to ascertain new facts or materials regarding the relevant case which are related to the facts with respect to the matters provided in the Rules of the Japan Fair Trade Commission in paragraph (1) after the agreement set forth in the paragraph, when the existence of conditions are found where a certain period is necessary for the report or submission of the new facts or materials, the Japan Fair Trade Commission may request, in the consultation, the enterprise that made a report and submission to make the agreement in which the enterprise that made a report and submission conducts the acts listed in item (i) below in addition to the acts listed in item (i) of the preceding paragraph, and the Japan Fair Trade Commission conducts the acts listed in item (ii) below instead of the acts listed in item (ii) of the preceding paragraph:

the following acts:

reporting the new facts or submitting the new materials to the Japan Fair Trade Commission immediately when the new facts or materials are ascertained after the agreement; or

reporting the facts, submitting the materials, or consenting to the inspection, or conducting other acts, at the request of the Japan Fair Trade Commission, regarding the facts or materials obtained from the acts listed in (a);

reducing from the surcharge before reduction, a surcharge before reduction multiplied by the rate decided by the Japan Fair Trade Commission based on its assessment of the contents of the facts relevant to the matters provided in the Rules of the Japan Fair Trade Commission set forth in the previous paragraph obtained from the acts (referred to as the "after assessment rate" in the following paragraph and paragraph (5)), within the scope of a specified rate as the lower limit, and the upper limit which is the specified rate plus the rate stipulated in the agreement pursuant to the provisions in the Rules of the Japan Fair Trade Commission for the acts listed in the preceding item by the enterprise that made a report and submission (limited to the rate not exceeding upper limit rate) as the rate which the Japan Fair Trade Commission may further reduce the surcharge before reduction.

In cases under Article 7-2, paragraph (1), when there is an agreement set forth in paragraph (1) (including the agreement which contains the engagement in the acts listed in each of the items in the preceding paragraph; the same applies in this Article and the following Article), the Japan Fair Trade Commission is to reduce from the surcharge before reduction the sum of the amount to be reduced pursuant to paragraph (2) or (3) of the preceding Article and the surcharge before reduction multiplied by the specified rate or the after assessment rate according to the contents of the agreement.

The agreement set forth in paragraph (1) is to be concluded with its contents clarified in writing on which the Japan Fair Trade Commission and the enterprise that made a report and submission sign or register and seal.

If the agreement set forth in paragraph (1) which contains the engagement in the acts listed in item (ii) of paragraph (2) is to be concluded, the Japan Fair Trade Commission is to state the method of the assessment and the decision of the after assessment rate in the writing set forth in the preceding paragraph.

In the consultation set forth in paragraph (1), the Japan Fair Trade Commission may request the enterprise that made a report and submission to explain an overview of the facts or materials that it may report or submit through the acts listed in paragraph (1), item (i) (a).

If the agreement set forth in paragraph (1) is not reached (excluding the cases where the enterprise that made a report and submission does not respond to the request set forth in paragraph (2) and the agreement which contains only an engagement in the acts listed in each of the items of paragraph (1) was reached), the Japan Fair Trade Commission may not use the documents and other materials that record the explanation by the enterprise that made a report and submission at the consultation set forth in paragraph (1) as evidence.

The necessary procedures regarding the consultation set forth in paragraph (1) such as the deadline for application of consultation is prescribed by the Rules of the Japan Fair Trade Commission.

The enterprise that made a report and submission may appoint an agent (limited to an attorney or legal professional corporation; referred to as a "specified agent" in the following paragraph and paragraph (11)) at the time of the consultation set forth in paragraph (1).

The Japan Fair Trade Commission is to inform the enterprise that made a report and submission in writing that a specified agent may be appointed at the time of the consultation set forth in paragraph (1).

With respect to the application of the provisions of paragraphs (1) and (4) when the enterprise that made a report and submission appoints a specified agent pursuant to the provisions of paragraph (9), the term "confer with the enterprise that made a report and submission" in paragraph (1) is deemed to be replaced with "confer with the enterprise that made a report and submission or a specified agent (meaning the specified agent as provided in paragraph (9); the same applies in paragraph (4))", and the term "and the enterprise that made a report and submission" in paragraph (4) is deemed to be replaced with ", the enterprise that made a report and submission and the specified agent".

If the Japan Fair Trade Commission finds that a fact falling under any of the following items exists before issuing an order pursuant to the provisions of Article 7-2, paragraph (1) or a notice pursuant to the provisions of Article 7-4, paragraph (7) to an enterprise that reported facts and submitted materials regarding the fact pursuant to the provisions of Article 7-4, paragraph (1), item (i), paragraph (2), items (i) through (iv), or paragraph (3), item (i) or (ii), these provisions do not apply, notwithstanding the provisions of paragraphs (1) through (3) of the article and paragraph (3) of the preceding Article:

that the facts reported or materials submitted by the enterprise (meaning the enterprise and any one or more other enterprises that reported the facts and submitted the materials jointly with the enterprise, if the relevant enterprise is the person who reported the facts and submitted the materials pursuant to the provisions of Article 7-4, paragraph (4); the same applies from this item through item (iii).), or the facts or materials obtained from the acts listed in Article 7-5, paragraph (1), item (i) or paragraph (2), item (i) engaged by the enterprise, contained false information;

that the enterprise (limited to the enterprise that reported facts and submitted materials regarding the facts pursuant to the provisions of Article 7-4, paragraph (1), item (i)) failed to report facts or submit materials, or reported false facts or submitted false materials in response to the request pursuant to the provisions of paragraph (6) of the article;

that the enterprise (limited to the enterprise that reported facts and submitted materials regarding the facts pursuant to the provisions of Article 7-4, paragraph (2), items (i) through (iv) or paragraph (3), item (i) or (ii)) reported false facts or submitted false materials in response to the request pursuant to the provisions in paragraph (6) of the article;

that, in the case concerned with the violation committed by the relevant enterprise, the enterprise coerced another enterprise (limited to one other than the relevant enterprise and other than any other enterprise that reported the facts and submitted the materials jointly with the enterprise if the enterprise is the person that reported the facts and submitted the materials pursuant to the provisions of Article 7-4, paragraph (4) among the enterprises and any other one or more enterprises that reported the facts and submitted the materials jointly with the enterprise; the same applies in this item) to commit the violation provided in Article 7-2, paragraph (1) or blocked another enterprise from discontinuing the relevant violation;

that the enterprise blocked another enterprise (limited to one other than the relevant enterprise and other than any other enterprise that reported the facts and submitted the materials jointly with the enterprise if the enterprise is the person that reported the facts and submitted the materials pursuant to the provisions of Article 7-4, paragraph (4), among the enterprise and any other one or more enterprises that reported the facts and submitted the materials jointly with the enterprise) from reporting facts and submitting materials regarding the fact pursuant to the provisions of Article 7-4, paragraph (1), item (i), paragraph (2), items (i) through (iv), or paragraph (3), item (i) or (ii) or applying for the consultation provided in paragraph (1) of the preceding Article;

that the enterprise disclosed to a third party (limited to one other than the relevant enterprise and other than any one or more enterprises that reported the facts and submitted the materials jointly with the enterprise if the enterprise is the person that reported the facts and submitted the materials pursuant to the provisions of Article 7-4, paragraph (4) among the enterprise and any other one or more enterprises that reported the facts and submitted the materials jointly with the enterprise), without justifiable grounds, the fact that the enterprise reported the facts and submitted the materials regarding the fact pursuant to the provisions of Article 7-4, paragraph (1), item (i), paragraph (2), items (i) through (iv), or paragraph (3), item (i) or (ii) or concluded the agreement or conducted the consultation set forth in paragraph (1) of the preceding Article; or

that the enterprise, in violation of the agreement set forth in paragraph (1) of the preceding Article, failed to conduct the acts relevant to the agreement.

In the case under Article 7-2, paragraph (1), if there is a final and binding decision to impose a fine on the same case on the relevant enterprise, instead of the amount calculated pursuant to the provisions of the Article, Article 7-3, Article 7-4, paragraph (2) or (3), or Article 7-5, paragraph (3), the Japan Fair Trade Commission is to deduct from the relevant amount the amount equivalent to one-half of the amount of the relevant fine provided, however, that this does not apply if the surcharge amount calculated pursuant to the provisions of Article 7-2, Article 7-3, Article 7-4, paragraph (2) or (3), or Article 7-5, paragraph (3) does not exceed the amount equivalent to one-half of the amount of the relevant fine, or if the surcharge amount after the relevant deduction is less than one million yen.

In the case under the proviso to the preceding paragraph, the Japan Fair Trade Commission may not order payment of a surcharge.

If the Japan Fair Trade Commission does not order payment of a surcharge pursuant to the provisions of the preceding paragraph, it is to notify the fined enterprise to that effect in writing upon issuing an order pursuant to the provisions of Article 7-2, paragraph (1) to the enterprise other than the relevant enterprises regarding the case concerned with the violation provided in Article 7-2, paragraph (1), committed by the relevant enterprise (by the deadline provided for in the Rules of the Japan Fair Trade Commission if the Japan Fair Trade Commission does not issue the order).