Fines on firms blocking FTC probes to be raised

October 28, 2017

Tokyo- The Japanese government is considering a law revision to raise fines on companies that block antitrust investigations by the Fair Trade Commission, Jiji Press learned Friday.

An early draft of a bill to revise the antimonopoly law, drawn up by the FTC, calls for introducing a system to add fines for violations of the law on such obstructionists and expanding the leniency program for those that voluntarily report their wrongdoing.

The envisioned measures are aimed at facilitating antitrust probes by giving target companies incentives to cooperate, informed sources said.

The government hopes to submit the bill during an ordinary session of the Diet, Japan's parliament, that will start next January.

Under the current leniency program, fines are reduced by 30 to 100 pct for up to five companies per case that voluntarily report violations of the law.

The draft calls for scrapping the limit for such companies.

It also includes an expansion in the range of punishable cases to violations within the 10 years before the start of investigation from the current maximum of three years.

Another item in the draft is a rise in the maximum fines for the crime of obstructing FTC investigations from the current 3 million yen. Jiji Press