Contents
FORE WORD by Mrs. Michiko Ariga PREFACE

CHAPTER 1:
HISTORY OF THE POLICIES CONCERN INC CARTELS AND MONOPOLIES
A. POLICIES CONCERNING CARTELS AND MONOPOLIES BEFORE WORLD WAR II
1.Carteis
2. Monopolies—Origiriating With the Zaibatsu
B. ZAIBATSIJ DISSOLUTION, ECONOMIC DECONCENTRA-
TION, AND THE BREAKIJP OF PRIVATE CONTROL
ORGANIZATIONS AFTER WORLD WAR II
I.Zaibatsu Dissolution
2. Economjc Deconcentration
3. Breakup of the Private Com rol Organizations
C. ESTABLISHMENT OF THE ANTIMONOPOLY LAWS
I. Background of the Enactnient of the Aritimonopoly Act
2. Outline of the Antirnonopoly Açt
3. Outline of the Trade Association Act
D. RELAXATION OF THE ANTIMONOPOLY LAWS
1.The 1949 Amendinent
2.The 1953 Amendment
3. Proposed 1958 Amendment
4. Enactnient of Various Exeniption Laws
5. Production Curtailment by Administrative Guídance
E. ECONOMIC GROWTH AND ANT.IMONOPOLY POLICY-1960 to 1969
1. Policies Against Rising Prices
2. General Consumer Protection Policy
3. Industrial Policy
a. New Industrial Structurc Policy
b. Recomrnended Production Curtailment v. Depression Carteis
c. Lnvestment Adjustnient
d. Merger Promotion and a Holding Conipany
4. Big Merger Cases
F. STRENGTH.ENING OF THE ANTIMONOPOLY POLICY-1970 to 1977
1.Establishnient øf the Antimonopoly Conference.
2. Attacks A.gainst Price Related Carteis
3. Economic Research on Business Groups and Sõgõ Shõsha
4. The 1977 Amendment
5. After the 1977 Amendrnent
G. THE JAPANESE ECONOMY AND ANTIMONOPOLY POLICY
1. Overali Evaluation
2. Current Policy Objectives

CHAPTER II:
THE ANTIMONOPOLY ACTAS AMENDED
A. PURPOSE OF THE ANTIMONOPOLY ACT
B. DEFENITION AND INTERPRETATION OF BASIC TERMS
1. Entrepreneur..
2. Trade Association
3. Officer
4. Competition
5. Substantial Restraint of Competition in Any Particular Field of Trade
C. PROHIBITION AGAINST PRI VATE MONOPOLEZATION
1. Exclusion or Control of I3usiness Activities of Other Entrepreneurs
2. Contrary to the Pubiic Interesi
3. Remedy
D. PROHIBITION AGAINST UNREASONABLE RESTRAINT OF TRADE
1. Proof of Agreement or Mutual Undcrstandings
2. Horizontal Agreement v. Vertical Agreement
3. Types of Concerted Activities
4. Remedy
5. Surcharges on Profits Obtained Through Unreasonable
Restrainis of Trade
a.Types of Cartel Agreernents That Are Subjeci to Surcharges
b. How to Calculate the Arnount of Surcharges
c. Procedure to Collect Surcharges
d. Enforcement
6. Administrative Guidaiice
E. RESTRICTIONS IN IN'TERNATIONAL AGREEMENTS OR CONTRACTS
1. Matters Constituting Unreasonable Restraint of Trade
2. Matters Constituting Unfair Business Practices
3. Filing Requirernents
4. Remedy
F. PROHIBITED ACTIVITIES OF TRADE ASSOCIATIONS
1. Substantial Restraini of Cornpctition
2. international Agreement or Contraci
3. Limiting Number of Entrepreneurs
4. Restrictions on Functions of Activities of Constituem Entrepreneurs
5. lnducernent or Coercion of Unfair Business Practices
6. GuideIjnes for Trade .Association Activities
7. Filing Requirements
8. Remedy
G. MEASURES AGAINST MONOPOLISTIC SITUATIONS
1. Market Structure Tesi
a. Latesi One-year Period
b. Aggregated Total AmoUni of Prices
c. Market Share Calculation
d. Barriers to Entry
2. Market Performance Tesi
a. Donward inflexibility of prices
b. Excessive profits
c. Excessive selling costs and general and adniinistrative expenses
3. Negative Requirements
4. Procedural Requirements
H. RESTRICTIONS ON STOCKHOLDJNGS, INTERLOCK DIRECTORATES, MERGERS AND TRANSFER OF BUSINESSES
1. Prohibjtion Against a Holding Company
2. Restrictions on Stockholdings by a Giani Cornpanv
3. Restrictions on Stockholdings by a Cornpany
a. Guidelines on Stockholdings
b. Filing Requirements of Reports on Stockholdings
4. Restrictions on Stockholdings by a Financial Cornpany
5. Restrictions on Enterlocking Directorates
6. Restrictions on Stockholdings by a Person Other Than a Company
a. Filing Requirements
7. Restrictions on Mergers
a. Filing Requirements
8. Restrictions on Transfer of a Business
9. Merger Guidelínes
10. Rernedies and Penal Sanctions
1. PARALLEL PRICE INCREASES
1. Structural Requirements
2. Definiiion of Parailel Price lncrease
3. Exemptions
4. Enlorcernent
PROHIBITION AGAI NST UNFAIR BUSINESS PRACTICES
I. In General
2. FTC Notification No. 11 of 1953 Conçerning Unfair Business Practices Applicable to Industries iii General a. Refusal to. Deal
b. Discritninatory Dealing e. Discrimination by a (roup
d. Price Discrirnination
e. Unreasonably Low or l-Iigh Price
f. Undue Customer Inducemeni or Coercion
g.Exclusive Dealing
h.Vertical Restricti'e l)ealing, lncliiding Resale Price
Maintenance
i.Interference in the Appointmcnt of Ofíiccrs of Another Entrepreneur
j.Misuse of Predorninant Bargaining Position
k.Interference with a Transactiõn of a Competitor
1.Disturbance of the Internal Aífairs of a Cornpeting Company
3. FTC Notifications Concerning Specific Unfair Business Practices Applicabie to Particular industries
a.Offering Premiums
b.Misleading Representations
c.Specific Unfair Business Practices in the 1)epartment Store Industry (FTC Notification No. 7 of 1954)
d. Specific Unfair Business Practices in the Ncwspaper Industry (FTC Notification No.14 of 1964)
e.Specific Unfair Business Practices in the Textbook Industry (FTC Notification No. 5 of 1956)
f. Specific Unfair Business Practices in the \larine Transportation Industry (FTC Notification No. 17 of 1959)
4. Remedy
5. Act Against Unjustifiabie Premiums and Misleading Representations (Act No.134 of 1962)
6. Act Againsi Delay in Payment, Etc., to Subcontractors (Act No. 120 of 1956)
K. EXEMPTIONS
1. Natural Monopoly
2. Legitimate Acts Under Special L,aws and Orders
3. Acts Under Industrial Property Rights
4. Acts of Cooperatives
5. Resale Price Maintenance Coniracts
6. Depression Carteis
7. Rationalization Cartéis
L. THE FAIR TRADE COMMISSION
1. The Structure of lhe Fair Trade Commission
2. Staff Offjce
3. Powers
M. ADMINISTRATIVE, CIVIL AND CRIMINAI PROCEDURES
1.Administrative Procedures
a.Preliminary Investigation
b.Cornpulsory Investigation
c.Recommendation Systeni
d.Formal Hearing Procedure
e.Initial Decision
f.Consent Decision
g.Temporary Injunction
2.Civil Procedures
3.Criminal Procedures

CHAPTER III:
EXEMPTION LAWS
A. EXEMPTION LAWS CONCER N 1 NG MONOPOLIZAT1ON OR BUSINESS COMBINES
B. EXEMPTION LAWS CONCERNING CARTELS
1.General Remarks
a. Classification by Industry
b. Classification by Reason of Enactment
e. Conditions and Procedures to Forrn Cartels
d. Control and Supervision of Exempted Cartels
e.Non-mernbers Regulatory System
2. Laws Concerning Export or Import Cartels
a.Export and Import Trading Act
(1)Export Agreements
(2)Import Agreements
(3) Export-lmport Agreements
(4) Fore.ign Trade Unions
(5) Restriction Orders Concerning the Activities of Non-members of Carteis
(6) MITI-FTC Relations
b. Export Marine Products Industry Promotion Act
3. Laws Concerning Small Business Carteis
a. Small and Medium Enterprise Organization Act
(1) Stabilization Carteis
(2) Rationalization Cartels
(3) Joint Economic Business
(4) Restriction Orders Aífecting Non-rnembcr 01 Associations
(5) M1TI-FTC Relations
b. Act Concerning Proper Operation of the Business Requiring Environmental Sanitation
c.Fishery Production Adjustment Association Ad
4.Laws Concerning Special Depression Carteis
a. Specific Depresscd industries Temporary Measures Act
S. Laws Concerning Special Rationalization Carteis
a.Machinery Industry Promotion Temporary Measures Act
b.Eiectronics Industry Promotion Temporary Measures Act
c.Specific Electronics Industry and Machinery Industry Promotion Temporary Measures Act
d. Specific Machinery and information Industry Prornotion
Temporary Measures Act
e.Coal Mining Industry Rationalization Temporary Measures Act
f.Textile Industry Facilities Ternporary Measures Act
g.Sugar Price Stabilization Act
6. Laws Concerning Shipping Carteis
a. Marine Transportation Act
b. Coastal Shipping Association Act
7. Government Reguiated Industries
a.Land Transportation Industry
b.Aviation Industry
c.Harbor Transportation Industry
d.Warehouse Industry
e.Insurance Industry
8. Miscellaneous
a.Silk Yarn Industry
b.Fruit Industry
c.Fertilizer Industry
d.Liquor Industry
e.Perjshabie Foods Wholesale Market

CHAPTER IV
STATISTICS
A. VIOLATION CASES
1. Fajr Trade Comnissjon Decisions
B. STATUS OF EXEMPTEI) CARTELS.
1. CIassification of Exernpted Cartels
2. An Exaniination of Current Carteis in Japanese lndustrv
a. Cartel Ratios
b. Objects of Restriction and Outsider Restriction Orders
3. Depression Carteis and Rationalization Carteis Under the Antimonopoly Act
C. REPORTS FILED UNDER THE ANTIMONOPOLY ACT
I. International Agreements or Contracis
2. Trade Associations
3. Reporis of Stockholdings
4. lnterloeking Directorates
5. Mergers and Transfers of Businesses
6. Resale Price Maimenance Contracts
D. STATISTICS CONCERNING THE ACT AGAINST UNJUSTIFIABLE PREMIUMS AND MISLEADING REPRESENTATIONS
1. Cea.se and Desist Orders
2. Fair Competition Agreernents
E. STATISTICS CONCERNING THE ACT AGAINST DELAY IN PAYMENT ETC., TO SUBCONTRACTORS
F. STATISTICS ON CON('ENTRATION RATEOS
G. STATISTICS ON MAJOR BUSINESS GROUPS

TABLES
Table I: The Enforcemeni of Guidelines on International Licensing Agrcernents and Sole Irnport
Distributorship Agreernents
Table II: Examples of Industries Satisfying the Market Srructure Requirement Under Section 2(7) of the Antimonopoly Ad.
Table III: List of Items Satisfying Market Siructure
Requirernent Under Section 18-2 of the Antimonopoly Act
Table IV: Organii.ation of the Fair Trade Comniission
Table V:FIow Chari of the FTC Procedures
Table VI:List and Classification of Laws Providing Exemptions For Cartels by l.ndustry
Table Vil-A:Classification of FTC Decisiõns by Applicable Provision of Law and by Year
Table VII-B:Classification of FTC Decisions by Procedures
Table VII-C:Detailed Classification of Violations of Section 8(1)
Table VII-D: Detailed Classification of Violations of Section
Table VIII: Number of Cartel Agreernents Formed Under the Major Exemplion Laws
Table IX-A: Industrial Association Carteis Under the Small & Medium Enterprise Organization Act
Table IX-B: Export Carteis Under the Export and lmport Trading Act
Table X: Cartel Ratios
Table XI: List of Depression Carteis Approved Under
Section 24-3 of the Antimonopoly Act
Table XII: List of Rationalizatioii Carteis Approved Under
Section 24-4 of the Antimonopoly Act
Table XIII: Classification of International Agrccmcnt of Contracts by Contents
Table XIV:Stockholdings and luteriocking Directorates
Reported in Accordance with I'art IV of the Antimonopoly Act
Table XV-A: Classification of Mergers by Scale of Company and by Year
Table XV-B: Classification of Transfers of I3usiness by Scale of Company and by Year
Table XV-C: Mergers Reported in Accordance with Section 15(2) of the Antimonopoly Acr
Table XV-D: Transfeis of Businec Reported in Accordance with Seci ion 16 of the Antimonopoly Act
Table XVI: Examples of Major Mergers .
Table XVII: Number of Mergers by Types
Table XVIII: Classification of Cease and Desisi Orders by Year (Concerning the Act Against Unjustifiable Prerniums and Misleading Representations)
Table XIX: List of Industries Whcre Fair Competition Rules Have Been Adopred
Table XX: Number of Warnings by Year (Concerning the Act Against Delay in Payrnent, etc. • to Subcontractors)
Table XXI-A: Production Concentration Index
Table XXI-B: Concentration Trends
Table XXI-C: Concentration Ratio of Top 100 Firms in 1977
Table XXI-D: Trend in Overali Concentration Ratios
Table XXII-A: Average Stockholding Ratios in the Group
Table XXII-13: Cross Stockholding Ratios
Table XXII-C: Ratio of Interlocking Directorates
Table XXII-D: Dependency Ratio on Borrowing from
Financial Companies in the Sarne Group
Table XXII-E: Shares of Major Business Groups Over the National Economy

APPENDICES
A. Act Concerning Prohihition of Private Monopoly and Maintenance oi Iair Trade (Act No. 54, April 14, 1947)
B. Unfair Business Practices (Fair Trade Commission Notification No. II øt 1953)
C. Unfair Busines Practices (Fair Trade Cornrnission Notification No. 18 of 1982)
D. Unfair Business Practices in the Marine Transportation Industry (Fair Trade Cornrnission Notification No. 17 of 1959)
E. Antirnonopoly Act Guidelines for International Licensing Agrecmcnts (May 24, 1968)
F. Antirnonopoly Act Guidelines for Sole lrnport Distributorship Agreemenis (Nov. 21, 1972)
G. AntimoflOPOlY Act Interpretation Relating to Export Carteis and International Agreemcnts (Aug. 9, 1972)
H. AdministratiVe Procedure Standards for Examining Mergers or Transfers of Business (July 15, 1980)
1. Administrative Procedure Standards for Exarnining Mergers or
Transfers of Business in the Retailing Sector (July 24, 1981)
I. Administrative Procedure Standards for Exarnining of Stockholdings by Companies (Sep. 11, 1981)
II. A. Act Against Unjustifiablc Premiums and Miskading Representations (Act No. 134, May 15, 1962)
B. Misleading Representations Concerning Country oU Origin of Goods (Notification No. 34 of 1973)
C. Restrictions on Premium Offers by Loucries or Prize Competition (Notification No. 3 of 1977)
D. Restrictions on Premium Offers to Consumers (Notification No. 6 of 1977)
III. A. Act against Delay in Payment, Etc., to Subcontractors (Act No. 120, June 1, 1956)
IV. A. Act Concerning Exemptions, Etc., of the Application of lhe Act
Concerning Prohibition of Private Monopoly and Maintenance of Fair Trade (Act No. 138, November 20, 1947)
B. Export and lmport Trading Act (Act No. 299, August 5, 1952) (Extract)
C. SmaIl and Medjum Enterprise Organization Act (Act No. 185, November 25, 1957) (Extract)
V.Selected Bibliography of Englísh and German Titles