Competition

• Author: International Law Group

On October 7, 1999, an Agreement between the Government of the United States and the Government of Japan Concerning Cooperation on Anticompetitive Activities entered into force. Both Japan and the United States realistically admit that, from time to time, differences may come up over whether and how to enforce their antitrust laws. The parties declare the importance of antitrust enforcement to their respective economies and affirm their commitment to carefully consider each other's important interests in applying their competition laws.

For purposes of this Treaty, Article I defines the "competition authorities" as including the U.S. Department of Justice and the Federal Trade Commission and the Japan Fair Trade Commission. On the U.S. side, the "competition laws" refer to the Sherman and Clayton Acts, the Wilson Tariff Act and the Federal Trade Commission Act and their implementing regulations. For Japan, it includes the Antimonopoly Law of April 1947 and its corresponding regulations.

There are a number of conflictual situations that the Treaty dealswith. For example, one party's antitrust enforcement might involve a national or corporation of the other country. Moreover, it might pertain to anticompetitive activities (other than mergers or acquisitions) substantially carried out on the other party's territory.

The Treaty will also apply if one or more entities taking part in a merger or acquisition or a company controlling one or more parties to the transaction is a domestic company of the other party. Another instance is where the relief sought demands or bars conduct in the other party's territory. Finally, the Treaty will govern where the other party has required, encouraged or approved the conduct being investigated.

Since mutual notification that one of the above situations exist is key, the Treaty sets time limits for providing notice. The Treaty also requires each party to keep the other up to date on amendments to its competition statutes, as well as to the guidelines, regulations or policy statements relating to these statutes. Under Article III, each party's competition authority is to help the other party's international enforcement efforts to the extent feasible and domestically lawful. This may include supplying information as to each one's enforcement directed at behavior that might adversely affect competition in the other party as well as...