The 2011 Reform of Japan’s Business Concentration Regulations

Abstract

The  Japanese  substantial  merger  review  underwent  significant  changes  in  2011.  The  amendments  made  to  the  procedure  include  the  abolition  of  the  Prior  Consultation  Response,  improvements  to  communication,  the  establishment  of  a  clearance notification, and the loosening of requirements for a reduction of the waiting period. As regards  the  substantial  review  criteria,  the  revisions  affect  the  geographic  market  definition,  competitive  pressure  from  imports  and  related  markets,  consideration  of  imminent  failure,  and  consideration  of  decrease  in  demand.  It  is  expected  that  this  reform  will  make  the  Japanese  merger  review  more  time-efficient and  increase  predictability  for  parties and their lawyers.  

The reform process was accompanied by fundamental disputes regarding the role of  competition and the best strategies to enhance growth and international competitiveness  of Japanese companies. These controversies between  business federations, the Ministry  of  Economic  Affairs  (METI),  and  the  JFTC  have  been  shaping  Japanese  competition  policies for many decades and will continue to present an important topic for anyone  interested in Japanese competition law.