Monday, January 24, 2011
Posted by D. Daniel Sokol
Hiroshi Yamada (JFTC) explains Japanese antitrust law; recent developments and an agenda for the years ahead.
ABSTRACT: Did you know that the Japan Fair Trade Commission (JFTC) was the first authority in the world which challenged Intel, the largest computer chip manufacturer? In 2005, JFTC issued a cease-and-desist order against the Japanese subsidiary of the company on the ground that it had been foreclosing the market by providing excessive rebate and monetary incentives to Personal Computer Manufactures. The conduct fell under the category of ‘private monopolization’, prohibited by Japanese competition law, equivalent to so-called unilateral conduct regulation. Following this, the Korea Fair Trade Commission in 2008 fined Intel Corporation 25 million dollars and in the following year the European Union (EU) fined Intel 1.5 billion dollars, for abusing its dominant position by using a similar method as above. And the US Federal Trade Commission (FTC) this year (2010) reached a settlement with Intel who had allegedly employed exclusionary conduct and thereby violated the FTC Act.