Japan: Asia Pacific Competition Highlights | Q1 2022

In brief

The competition authority announced in March the closure of the investigation after accepting commitment plans from Wilson and its distributor in Japan. This was the first enforcement action taken by the JFTC against a foreign supplier in a parallel import case.

This update was published as part of our quarterly newsletter, Asia Pacific Competition Highlights. Click here to access the full report, which covers the most notable antitrust developments across nine Asia Pacific jurisdictions.


Contents

First parallel imports case resolved under commitment procedures

This is the first case involving parallel imports closed under the Commitment Procedures and the first enforcement action taken by the Japan Fair Trade Commission (JFTC) involving a foreign supplier in a parallel import case. While such past enforcement has targeted domestic distributors, the Commitment Procedure introduced in December 2018 may help overcome the enforcement challenges in cases involving a foreign company.

In March 2022, The JFTC announced the closure of the investigation against Wilson and its distributor in Japan after accepting commitment plans.

Wilson Sporting Goods ("Wilson") and its sole authorized distributor in Japan, Amer Sports Japan ("Amer"), have been investigated since 2020 on suspicion of interfering with parallel importers' transactions. The JFTC found that Amer got Willson's tennis rackets for advanced players from Japanese parallel importers who sold the rackets at cheaper prices than official prices and, by using serial number information from holograms stickers on the rackets, requested Wilson to warn overseas authorized distributors not to sell tennis rackets to Japanese parallel importers. Wilson's warning to overseas distributors as requested by Amer might be deemed as interference with a competitor's transactions, which is prohibited as unfair trade practice under Japanese antitrust law.

In response to the notice of the Commitment Procedures issued by the JFTC, Amer and Wilson submitted commitment plans that included ceasing the alleged conduct and not performing similar conduct for the next three years, and Wilson also agreed not to impose restrictions on passive sales to Japanese parallel importers on overseas distributors. The JFTC approved the commitment plans and decided to close the investigation with no sanctions.

For more detail, please refer to the JFTC's press release.

Related alerts

Australia: Asia Pacific competition highlights | Q1 2022

China: Asia Pacific competition highlights | Q1 2022

Hong Kong: Asia Pacific competition highlights | Q1 2022

Indonesia: Asia Pacific Competition Highlights | Q1 2022

Japan: Asia Pacific Competition Highlights | Q1 2022

Singapore: Asia Pacific competition highlights | Q1 2022

Taiwan: Asia Pacific competition highlights | Q1 2022

Thailand: Asia Pacific competition highlights | Q1 2022

Vietnam: Asia Pacific competition highlights | Q1 2022

 


Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.