Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

A trade association must not engage in any act which falls under any of the following items:

substantially restraining competition in any particular field of trade;

entering into an international agreement or an international contract as provided in Article 6;

limiting the present or future number of enterprises in any particular field of business;

unjustly restricting the functions or activities of the constituent enterprise (meaning an enterprise which is a member of the trade association; the same applies hereinafter); or

inducing an enterprise to employ an act that constitutes unfair trade practices.

When an act in violation of the provisions of the preceding Article occurs, pursuant to the procedures provided for in Section 2 of Chapter VIII, the Japan Fair Trade Commission may order the relevant trade association to cease and desist the relevant act, to dissolve, or to take any other measures necessary to eliminate the relevant act.

The provisions of Article 7, paragraph (2) apply mutatis mutandis to any act in violation of the provisions of the preceding Article.

When the Japan Fair Trade Commission orders a trade association to take measures provided in paragraph (1) or Article 7, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, if the Japan Fair Trade Commission finds it to be particularly necessary, pursuant to the procedures as provided in Section 2 of Chapter VIII, it may order an officer, manager, or constituent enterprise (including the relevant enterprise if an officer, employee, agent, or any other person acting for the benefit of an enterprise is a constituent enterprise; the same applies in Article 26, paragraph (1)) of the relevant association to also take measures necessary to ensure the measures provided in paragraph (1) or Article 7, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph.