Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

The Japan Fair Trade Commission, which has the duty to achieve the purpose set forth in Article 1, is hereby established pursuant to the provisions of Article 49, paragraph (3) of the Act for Establishment of the Cabinet Office (Act No. 89 of 1999).

The Japan Fair Trade Commission is administratively attached to the office of the Prime Minister.

In order to perform the duty set forth in paragraph (1) of the preceding Article, the Japan Fair Trade Commission takes charge of the following administrative affairs:

those concerning regulations on private monopolization;

those concerning regulations on unreasonable restraint of trade;

those concerning regulations on unfair trade practices;

those concerning regulations on monopolistic situations;

those concerning international cooperation in administrative affairs under the jurisdiction of the Japan Fair Trade Commission; or

administrative affairs that are assigned to the Japan Fair Trade Commission pursuant to the laws (including an order pursuant to the laws), beyond what is listed in any of the preceding items.

The Chair and Commissioners of the Japan Fair Trade Commission exercise their authority independently.

The Japan Fair Trade Commission consists of the Chair and four Commissioners.

The Chair and Commissioners are appointed by the Prime Minister with the consent of both Houses of the Diet from among persons aged thirty-five and over who have knowledge and experience in law or economy.

The appointment and dismissal of the Chair is certified by the Emperor.

The Chair and Commissioners are government officials.

The term of office of the Chair and Commissioners is five years provided, however, that the term of office of the Chair or Commissioner appointed to fill a vacancy is the remaining term of office of the Chair or Commissioner's predecessor.

The Chair and Commissioners may be reappointed.

The Chair and Commissioners retire from office upon reaching the age of seventy.

If the term of office of the Chair or Commissioner expires, or a vacancy occurs at a time when the consent of both Houses of the Diet cannot be obtained because the Diet is not in session or the House of Representatives has been dissolved, the Prime Minister may appoint the Chair or Commissioner from among persons who have the qualifications provided in paragraph (2) of the preceding Article. In this case, the subsequent approval of both Houses of the Diet must be obtained in the first session of the Diet after the appointment.

The Chair or Commissioner may not be dismissed from office against the Chair or Commissioner's will, except in cases falling under any of the following items:

a decision of the commencement of bankruptcy proceedings has been made against the Chair or Commissioner;

the Chair or Commissioner has been dismissed by disciplinary action;

the Chair or Commissioner has been punished for violation of the provisions of this Act;

the Chair or Commissioner has been punished by imprisonment or severer punishment;

the Japan Fair Trade Commission has decided that the Chair or Commissioner is incapable of executing the Chair or Commissioner's duties due to mental or physical disorder; or

the subsequent approval of both Houses of the Diet could not be obtained in cases under paragraph (4) of the preceding Article.

In cases under items (i) or (iii) through (vi) of the preceding Article, the Prime Minister must dismiss the Chair or Commissioner concerned from office.

The Chair presides over the Japan Fair Trade Commission and represents it.

The Japan Fair Trade Commission must designate in advance an acting Chair from among the Commissioners if the Chair cannot execute the Chair's duties.

No meeting of the Japan Fair Trade Commission may be held, nor may a resolution be effected without the attendance of the Chair and two or more Commissioners.

A Japan Fair Trade Commission's decision is effected by a majority of the attendees. In the event of a tie vote, the Chair is to decide.

Notwithstanding the provisions of the preceding paragraph, a decision by the Japan Fair Trade Commission under the provisions of Article 31, item (v) must have unanimous concurrence by all Commissioners and the Chair except for the Commissioner or Chair concerned.

For the purpose of applying the provisions of paragraph (1) if the Chair cannot execute the Chair's duties, the Commissioner chosen to act on behalf of the Chair pursuant to the provisions of paragraph (2) of the preceding Article is deemed to be the Chair.

The General Secretariat is hereby established for the Japan Fair Trade Commission for the purpose of the administration of its affairs.

The General Secretariat is headed by the Secretary General.

The Secretary General presides over the administrative affairs of the General Secretariat.

The Secretariat and Bureaus are hereby established in the General Secretariat.

The provisions of paragraphs (2) through (8) of Article 17 of the Act for Establishment of the Cabinet Office apply mutatis mutandis to the establishment, the scope of the affairs under the jurisdiction, and the internal organization of the secretariat and bureaus referred to in the preceding paragraph.

The Secretariat and Bureaus established pursuant to the provisions of paragraph (4) do not exceed three.

A public prosecutor, an attorney practicing at the time of the appointment, or a person qualified to be an attorney must be among the staff members of the General Secretariat.

The duties of the staff member who is the public prosecutor referred to in the preceding paragraph are limited to duties related to cases of violation of the provisions of this Act.

Local offices are established at necessary locations as local organizations of the General Secretariat of the Japan Fair Trade Commission.

The names, locations, and jurisdictional districts of the Local Offices referred to in the preceding paragraph are provided by Cabinet Order.

Branches may be established at necessary locations under the Local Offices referred to in paragraph (1) to conduct some of the affairs of the Local Offices.

The names, locations, and jurisdictional districts of the branches referred to in the preceding paragraph are provided by Cabinet Office Order.

The remuneration of the Chair and Commissioners are provided for separately.

The remuneration of the Chair and Commissioners may not be reduced in amount against their will while they are in office.

The Chair, Commissioners, and staff members of the Japan Fair Trade Commission prescribed by Cabinet Order may not engage in any of the following acts while they are in office:

becoming a member of the Diet or of the council of a local public entity, or actively engaging in political activities;

engaging in any other remunerative duties except as permitted by the Prime Minister; or

engaging in commerce or any other business for monetary profit.

The Chair, Commissioners, and staff members of the Japan Fair Trade Commission must not express their opinions outside the Japan Fair Trade Commission on the existence or non-existence of facts or the application of laws and regulations with regard to a case provided, however, that this does not apply to a case provided for in this Act or to a case in which the results of their research on this Act are published.

The Chair, Commissioners, and staff members of the Japan Fair Trade Commission and any person who once held such a position must not divulge to others or make surreptitious use of the secrets of enterprises that came to their knowledge in the course of their duties.

If necessary for the performance of its duties, the Japan Fair Trade Commission may order public offices, corporations formed by special laws and regulations, enterprises or organizations of enterprises, or their personnel to appear before the Japan Fair Trade Commission, or require them to submit necessary reports, information, or materials.

If necessary for the performance of its duties, the Japan Fair Trade Commission may commission public offices, corporations formed by special laws and regulations, schools, enterprises, organizations of enterprises, persons with the relevant knowledge and experience, or others to carry out necessary investigations.

The Japan Fair Trade Commission may hold public hearings to obtain the opinions of the public if necessary for the performance of its duties.

In order to ensure the proper operation of this Act, the Japan Fair Trade Commission may make any necessary matters public except for the secrets of enterprises.

The Japan Fair Trade Commission may provide any foreign authority responsible for enforcement of any foreign laws and regulations equivalent to those of this Act (hereinafter referred to in this Article as a "foreign competition authority") with information that is deemed helpful and necessary to perform the foreign competition authority's duties (limited to duties equivalent to those of the Japan Fair Trade Commission as provided in this Act; the same applies in the following paragraph) provided, however, that this does not apply if the provision of the relevant information is found likely to interfere with the proper execution of this Act or to infringe on the interests of Japan in any other way.

When the Japan Fair Trade Commission provides information to a foreign competition authority pursuant to the provisions of the preceding paragraph, the Japan Fair Trade Commission must confirm the matters listed in the following items:

that the relevant foreign competition authority is capable of providing information equivalent to the information provided pursuant to the provisions of the preceding paragraph;

that the secrecy of information provided as secret pursuant to the provisions of the preceding paragraph will be protected under the laws and regulations of the relevant foreign country to a degree that is equivalent to the degree to which the secrecy of the information is protected in Japan; and

that the information provided pursuant to the provisions of the preceding paragraph is not used by the relevant foreign competition authority for purposes other than those contributing to the performance of its duties.

Appropriate measures must be taken so that the information provided pursuant to the provisions of paragraph (1) is not used for criminal proceedings undertaken by a court or a judge in a foreign country.

The Japan Fair Trade Commission must report annually to the Diet, through the Prime Minister, on the enforcement of this Act.

The Japan Fair Trade Commission may submit to the Diet, through the Prime Minister, its opinions on matters necessary to attain the purpose of this Act.