Latest news with #JFTC
Japan Times
6 days ago
- Business
- Japan Times
JFTC gives OK to Visa Worldwide's business improvement plan
The Japan Fair Trade Commission (JFTC) has approved a business improvement plan submitted by Visa Worldwide, which undertakes Visa card operations in Japan and other parts of the Asia-Pacific region. Through its investigation into a suspected violation of the antimonopoly law by Visa Worldwide, the JFTC concluded that swiftly executing proposed measures by the Singapore-based firm would restore a competitive environment under the so-called commitment procedures, the Japanese antimonopoly watchdog said in a press release Tuesday. In credit card transactions, sales data are transmitted from acquirers, or companies that enables retailers to accept payments by card, to card issuers through settlement service networks. An acquirer should pay a certain rate of fees to an issuer unless they are the same. The JFTC conducted an on-site inspection of Visa Worldwide's Japanese operation in July last year and has since found that the credit card operator notified acquirers in February 2018 of a plan to apply preferential rates to such fees only when they exclusively use the Visa Worldwide network and implemented the plan in November 2021. Some acquirers have actually come to take the advantage, according to people familiar with the matter. The commission, which took an administrative step against an international credit card brand for the first time ever, believes that Visa Worldwide's practice amounts to a transaction with a restraint condition prohibited by the law. However, it decided to refrain from imposing a severer sanction on the firm. "Better, cheaper networks should be provided through friendly competition between card companies," Masahiko Sogawa, a JFTC investigation division chief, said. In a comment, the Visa Worldwide Japan unit vowed to carry out the improvement measures to keep complying with the law.
6 days ago
- Business
JFTC OKs Visa Worldwide's Biz Improvement Plan
Tokyo, July 23 (Jiji Press)--The Japan Fair Trade Commission has approved a business improvement plan submitted by Visa Worldwide Pte Ltd., which undertakes Visa card operations in Japan and other parts of the Asia-Pacific region. Through its investigation into a suspected violation of the antimonopoly law by Visa Worldwide, the JFTC concluded that swiftly executing proposed measures by the Singapore-based firm would restore the competitive environment under the so-called commitment procedures, the Japanese antimonopoly watchdog said in a press release Tuesday. In credit card transactions, sales data are transmitted from acquirers, or companies that enables retailers to accept payments by card, to card issuers through settlement service networks. An acquirer should pay a certain rate of fees to an issuer unless they are the same. The JFTC conducted an on-site inspection of Visa Worldwide's Japanese operation in July last year and has since found that the credit card operator notified acquirers in February 2018 of a plan to apply preferential rates to such fees only when they exclusively use the Visa Worldwide network and implemented the plan in November 2021. Some acquirers have actually come to take the advantage, according to people familiar with the matter. The commission, which took an administrative step against an international credit card brand for the first time ever, believes that Visa Worldwide's practice amounts to a transaction with a restraint condition prohibited by the law. However, it decided to refrain from imposing a severer sanction on the firm. [Copyright The Jiji Press, Ltd.]
Yomiuri Shimbun
12-07-2025
- Business
- Yomiuri Shimbun
Freelance Law: Companies Must Make Efforts to Reform Their Mindset
It is unacceptable to outsource work or reduce remuneration in a way that disrespects freelancers, who are not affiliated with a company and take on work on an individual basis. Companies need to work to create an environment in which freelancers can work with peace of mind. The Japan Fair Trade Commission (JFTC) has issued a recommendation to publishing companies Shogakukan Inc. and Kobunsha Co., demanding that they prevent a recurrence of violations of the law on improvement of transactions between freelancers and companies. According to the JFTC, when the two companies outsourced production work for magazines and other publications to freelance writers and photographers, they did not clearly indicate the nature of the work or when their remuneration would be paid by, delaying payment to them. The JFTC also issued a similar recommendation to Shimamura Music, a major musical instrument sales company that outsourced work related to performances at events to freelance musicians and others. It also asked animation and game production companies to correct their commissioning methods and other practices. Freelancers tend to feel like they have no choice but to accept the situation if they are asked by companies to work based on verbal assurances or if their remuneration is reduced, fearing that they will lose work. Companies should be aware that outsourcing methods in a manner that takes advantage of the weak position of freelancers can lead even to a loss of trust in themselves. With the diversification of work styles, the number of people whose primarily role is that of a freelancer stands at 2 million. The types of profession vary widely, including designers, programmers and interpreters. For companies, freelancers with whom they have a long professional relationship and who can respond to urgent work requests are appreciated. For freelancers, this may also be an advantage. Even so, it cannot be helped if accusations of unscrupulousness are leveled at the companies over such practices as issuing unreasonable assignments and only providing low levels of remuneration. The freelance law came into effect in November last year for the purpose of protecting freelancers. It also requires companies to take measures to prevent workplace and sexual harassment toward freelancers. In addition to strengthening employee training, it is essential to establish an in-house consultation section. The challenge is that knowledge of the content of the law has not become widespread in society. The government should not only make the law well-known among companies, but should also have freelancers understand that checking business conditions in advance and entering into an equal contract with companies will lead to their own protection. Freelancers are not considered 'workers' under the Labor Standards Law and are therefore not covered by regulations on working hours or minimum wages. As a result, it is said that 'fake freelancers,' those who work in an identical manner to company employees but whom the companies are exempt from providing such remuneration as overtime, are common. Companies must not regard freelancers as cheap labor and use them merely for their own convenience. It is important for the government to investigate the actual situation and take concrete measures. (From The Yomiuri Shimbun, July 12, 2025)
Yomiuri Shimbun
30-06-2025
- Automotive
- Yomiuri Shimbun
Harley-Davidson Japan to Be Fined for Unfair Trade Practices; Company Enriched Itself by Setting Overly High Sales Quotas for Dealers
The Japan Fair Trade Commission has decided to issue a cease and desist order against Harley-Davidson Japan K.K. (HDJ), a Tokyo-based motorcycle sales company, for unfair trade practices in violation of the antimonopoly law, sources report. According to the sources, HDJ unilaterally imposed difficult-to-meet sales quotas on dealers, a practice which was detrimental to them. The JFTC is also expected to issue a surcharge payment order of about ¥200 million. Harley-Davidson is the leading manufacturer of large motorcycles in the United States, with some models costing over ¥5 million. HDJ, its Japanese subsidiary, has an exclusive distribution agreement with about 90 dealers in Japan. The sources say that no later than January 2023, HDJ began saddling dozens of dealers with sales quotas that they could not meet without purchasing new motorcycles from themselves. HDJ also indicated that it would not renew the dealers' exclusive sales contracts if they did not at least partially meet these quotas. The dealers, not wanting their contracts to be terminated, bought new motorcycles in the names of their own executives and employees to drive up their sales numbers. It is believed that the purchased vehicles were registered in the names of the executives and others and resold as 'registered unused vehicles' at discount prices lower than those of new vehicles. Some dealers spent tens of millions of yen a year buying their own motorcycles. The JFTC found that HDJ used its strong position to gain profits for itself at the dealers' expense, and that such practices legally constituted 'abuse of a superior bargaining position.' It has already sent HDJ a plan for measures to be taken and will formally issue the order after hearing HDJ's opinion.
Yomiuri Shimbun
07-06-2025
- Business
- Yomiuri Shimbun
Japan's Competition Regulator Says Tech Giants' Integration of Own Generative AI into Services Could Violate Antimonopoly Law
Yomiuri Shimbun file photo The Japan Fair Trade Commission head office in Chiyoda Ward, Tokyo The Japan Fair Trade Commission stated that tech giants integrating their own generative AI into their existing products with the intent to interfere with rival companies' business, this could constitute 'tie-in sales' or 'private monopolization' in violation of the Antimonopoly Law, in a report on its investigation into the generative AI market published Friday. There is a trend in the digital market for Big Tech companies, particularly Google, Apple, Facebook (now Meta), Amazon and Microsoft, to integrate their own generative AI services into their products. For example, Google search results include AI-generated summaries, while Microsoft has incorporated generative AI into office software like Word to assist with writing documents. According to the report, competing AI development companies expressed concerns to the JFTC that dominant firms could gain an advantage in the distribution of generative AI by integrating generative AI products into existing digital services and that it would become difficult to have users adopt latecomer firms' generative AI products. The JFTC noted that the integration of generative AI products into existing services by tech giants and other companies is a 'method of technological innovations and such an act itself is not immediately problematic under the Antimonopoly Law.' However, the commission also argued that if the purpose is to hinder competitors' businesses or raise barriers to entry, there is a risk of violating the law. Regarding the integration of generative AI on smartphones, related companies have expressed concerns. One company said 'restricting access to the software necessary to run our generative AI will cause a competitive disadvantage.' As Google and Apple have a monopoly on the the basic software for smartphones, the commission expressed the view that such access restrictions could also constitute 'interference with a competitor's transactions' in violation of the Antimonopoly Law. This is the first edition of the report, and the JFTC plans to continue to watch the situation and publish follow up reports as needed.
