GAL COMPETITION PROJECTGAL COMPETITION PROJECTJAPANJAPAN

Institutional Performance Institutional Performance NormsNorms

Harry First and Tadashi Harry First and Tadashi ShiraishiShiraishi

February 5, 2011February 5, 2011

2

3

SIZE OF COMPETITION AUTHORITIES

Source: JFTC, For Fair and Free Market Competition 26 (July 2010).

44

OPERATIONAL EFFICIENCYOPERATIONAL EFFICIENCY

High level of activityHigh level of activity Time for adjudicating cases: 2-5 yearsTime for adjudicating cases: 2-5 years Merger reviewsMerger reviews

informal pre-merger consultationsinformal pre-merger consultations Unfair trade practicesUnfair trade practices

Abuse of Superior Bargaining Position Task Abuse of Superior Bargaining Position Task ForceForce

policing unjust low pricespolicing unjust low prices Consultations: 3000 informal (FY 2009)Consultations: 3000 informal (FY 2009)

55

EXPERTISEEXPERTISE

FTC Chairman and CommissionersFTC Chairman and Commissioners not required to have competition law not required to have competition law

experienceexperience Chairman generally former MOF bureaucratChairman generally former MOF bureaucrat

StaffStaff career employeescareer employees almost no trained lawyers or economistsalmost no trained lawyers or economists

Hearing ExaminersHearing Examiners 2 of 6 JFTC employees2 of 6 JFTC employees

66

TRANSPARENCYTRANSPARENCY

Guidelines: high numberGuidelines: high number DeclinationsDeclinations

high number of formal complaintshigh number of formal complaints ConsultationsConsultations

low transparencylow transparency some merger reviewssome merger reviews

Public awarenessPublic awareness JFTC weekly press conferencesJFTC weekly press conferences

77

ACCOUNTABILITYACCOUNTABILITY

Data availabilityData availability DietDiet

budgetbudget appointmentsappointments reportingreporting legislative controls: amendments to AMAlegislative controls: amendments to AMA

CourtsCourts low level of judicial reviewlow level of judicial review

88

RULE OF LAWRULE OF LAW

Importance of GuidelinesImportance of Guidelines Availability of judicial reviewAvailability of judicial review But: informal consultationsBut: informal consultations Political pressuresPolitical pressures

99

FLASHPOINTSFLASHPOINTS

TransparencyTransparency better articulation of reasons in close better articulation of reasons in close

casescases ExpertiseExpertise

trained economiststrained economists appointment and role of Commissionersappointment and role of Commissioners

Use of resourcesUse of resources extensive guidance functionextensive guidance function protecting small businessprotecting small business