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Japan: Competition regulator seeks lower fines for cooperative violators

By  |  January 6, 2016

Eyeing a new approach to enforcing antitrust law, the Japan Fair Trade Commission seeks greater flexibility to reduce fines for violators who cooperate with its investigations.

The commission will begin designing its discretionary-fine model later this month and expects to propose the necessary legislative changes as soon as next year. It stands to become the first Japanese regulator to enjoy leeway in setting fines.

The commission now hands down monetary penalties based on prescribed formulas — 10% of relevant sales for price-fixing, 6% for engaging in exclusionary private monopolies and so on. A company suspected of unfair practices may qualify for a reduced fine only if it offers to cooperate with the commission before the start of an investigation. By contrast, reduced fines are already a common feature of Western antitrust enforcement, where they are seen as helping resolve cases sooner.

Full content: Nikkei Asian Review

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