I hereby give My sanction to the Law relating to the Prohibition of Private Monopoly and Methods of Preserving Fair Trade, for which the concurrence of the Imperial Diet has been obtained, and cause the same to be promulgated. Signed:HIROHITO, Seal of the Emperor This twelfth day of the fourth month of the twenty-second year of Showa (April 12, 1947) Countersigned: Prime Minister YOSHIDA Shigeru Minister of Justice KIMURA Tokutaro Minister of Welfare KAWAI Yoshinari Minister of Finance ISHIBASHI Tanzan Minister of Transportation MASUDA Kaneshichi Minister of Commerce and Industry ISHII Mitsujiro Minister of Agriculture and Forestry KIMURA Kozaemon Law No.54 LAW RELATING TO PROHIBITION OF PRIVATE MONOPOLY AND METHODS OF PRESERVING FAIR TRADE Index Chapter I General Rules Chapter II Private Monopolization and Unreasonable Restraint of Trade Chapter III Undue Substantial Disparities in Bargaining Power Chapter IV Stock Holdings, Multiple Directorates, Mergers and Transfer of Business Chapter V Unfair Methods of Competition Chapter VI Exemptions Chapter VII Indemnification of Damages Chapter VIII The Fair Trade Commission Section 1 Organization and Powers Section 2 Procedure Section 3 Miscellaneous Provisions Chapter IX Legal Suits Chapter X Penalties Supplementary Provisions Law relating to Prohibition of Private Monopoly and Methods for Preserving Fair Trade Chapter I. General Rules

Article 1. This law, by prohibiting private monopolization, unreasonable restraints of trade and unfair methods of competition, by preventing excessive concentration of power over enterprises, and by excluding undue restrictions of production, sale, price, technology etc. through combinations and agreements etc. and all other unreasonable restraints of business activities, aims to promote free and fair competition, to stimulate the initiative of entrepreneurs, to encourage business activities of enterprises, to heighten the levels of employment and national income and, thereby, to promote the democratic and wholesome development of national economy as well as to assure the interest of the general consumer.

Article 2. The term "entrepreneur" as used in this Law shall mean a person, natural or juridical, who operates a commercial, industrial, financial or any other business enterprise. The term "competition" or "competitor" as used in this Law shall include potential competition or potential competitor. The term "private monopolization" as used in this Law shall mean such business activities by which an entrepreneur, individually, or by combination, conspiracy or any other manner, excludes or controls the business activities of other entrepreneurs, thereby causing, contrary to the public interest, a substantial restaint of competition in any particular field of trade. The term "unreasonable restraint of trade" as used in this Law shall mean such business activities by which an entrepreneur, by contract, agreement or any other manner, in conjunction with other entrepreneurs, mutually restricts or conducts their business activities thereby causing contrary to the public interest, a substantial restraint of competition in any particular field of trade. The term "undue substantial disparities in bargaining power" as used in this Law shall mean such substantial disparities in bargaining power which, when they exist between an entrepreneur and his competitors, the superior bargaining power of said entrepreneur is not justified on technological grounds, and whereby the said substantial disparities in bargaining power are of such extent as to render private monopolization possible for any one of the following reasons: 1. because an entrepreneur controls the business in such particular field of trade or controls the materials used therein to such extent as to render it extremely difficult for another entrepreneur to start a new enterprise; 2. because an entrepreneur controls production in a particular field of trade to such extent as to render it extremely difficult for another entrepreneur actually to compete; 3. because an entrepreneur restrains or restricts free competition to such extent as to render private monopolization possible. The term "unfair methods of competition" as used in this Law shall mean such methods of competition which come under any one of the following items: 1. unwarranted refusal to receive from or to supply to other entrepreneurs commodities, funds and other economic benefits; 2. supplying of commodities, funds and other economic benefits at unduly discriminative prices; 3. supplying of commodities, funds and other economic benefits at unduly low prices; 4. inducing or coercing, unreasonably, customers of a competitor to deal with oneself by means of offering benefits or that of threatening disadvantages: 5. trading with another party on condition that said party shall, without good cause, refuse acceptance of supply of commodities, funds and other economic benefits from a competitor of oneself; 6. supplying of commodities, funds and other economic benefits to another party on such conditions that shall unduly restrain transactions between said party and his suppliers of commodities, funds and other economic benefits or customers or that shall unduly restrain relations between said party and his competitors, or on condition that the appointment of officers (hereinafter referring to directors, unlimited partners who are executive, auditors or persons similar thereto, manager or chief of the main or branch office) of the company of said party shall be subject to prior approval on part of oneself; 7. methods of competition other than those stipulated by the preceding items which are contrary to the public interest and which are designated by the Fair Trade Commission in accordance with such procedure as provided for by Article 71 and Article 72.

Chapter II. Private Monopolization and Unreasonable Restraints of Trade

Article 3. No entrepreneur shall effect a private monopolization nor shall be undertaken any unreasonable restraint of trade.

Article 4. No entrepreneur shall participate in any one of the following types of concerted activities: 1. establishment, stabilization or enhancement of prices; 2. restriction on volume of production or that of sales; 3. restrictions on technology, products, markets or customers; 4. restrictions on construction or expansion of facilities or on adoption of new technology or methods of production. The provisions of the preceding paragraph shall not apply in case the effects of such concerted activities on competition within a particular field of trade is negligible.

Article 5. No entrepreneur shall establish, organize or become a party to or a member of a juridical person or any other organization which controls distribution of all or a part of materials or products by methods of exclusive purchase or sale or which undertakes the allocation of all or a part of materials or products.

Article 6. No entrepreneur shall participate in an international agreement or an international contract with a foreign entrepreneur or participate in an agreement or contract on foreign trade with a domestic entrepreneur with regard to any one of the following items: 1. any matter which comes under any one of the items of Article 4, paragraph 1; 2. an agreement or a contract relating to restrictions on exchange of scientific or technological knowledge or information necessary for business activities. The provisions of the preceding paragraph shall not apply in case the effects of such agreement or contract on competition in any particular field of international or domestic trade is negligible. Any entrepreneur, when contemplating participation in an international agreement or an international contract with a foreign enterpreneur, or in an agreement or contract on foreign trade with a domestic entrepreneur, which agreement or contract shall continue for a considerable period of time (excluding such where delivery of the object due to one (1) transaction takes place over a considerable period of time), shall file an application with the Fair Trade Commission and receive its permission. In such a case as provided for by the preceding paragraph, an entrepreneur shall not participate in said agreement or contract for a period of thirty (30) days from the day of filing said application.

Article 7. In case there exisits any act which comprises a private monopolization or an unreasonable restraint of trade, the Fair Trade Commission may order the entrepreneur concerned, in accordance with the procedures as provided for in Section 2 of Chapter 8, to cease such act, to transfer a part of his business, or take any other necessary measures for eliminating private monopolization or unreasonable restraints of trade.

Chapter III. Undue Substantial Disparities in Bargaining Power

Article 8 When undue substantial disparities in bargaining power exist, the Fair Trade Commission may order the entrepreneur concerned, in accordance with the precedures as provided for in Section 2 of Chapter 8, to transfer a part of his business facilities, or to take any other necessary measures for eliminating said substantial disparities in bargaining power. In issuing an order prescribed in the preceding paragraph, the Fair Trade Commission shall give special consideration to the following items with respect to the entrepreneur concerned: 1. capital, reserves, and other aspects of the assets; 2. income and expenditures, and other aspects of operation; 3. composition of officers and directors; 4. location of factories, work yards and offices and other locational conditions; 5. aspects of business facilities and equipment; 6. existence or non-existence of patents, and other details thereof as well as other technological features; 7. capacity for and aspects of production and sales etc.; 8. capacity for and aspects of obtaining funds and materials etc.; 9. relations with other entrepreneurs through investments and other means; 10. comparisons with competitors on all points enumerated in the above items.

Chapter IV. Stock Holdings, Multiple Directorates, Mergers, and Transfer of Whole Business

Article 9. The establishment of holding company is hereby prohibited. The term "holding company" as used in the preceding paragraph shall mean a company whose principle business is to control, by holding stock (including partnership shares;hereinafter the same) the business activities of another company.

Article 10. Any company whose business is other than financial (the definition of which shall be banking, trust, insurance, mutual financing or securities business;hereinafter the same) shall not acquire stocks (excluding those without voting rights;hereinafter the same) of another company. The provisions of the preceding paragraph shall not apply to such a case where the Fair Trade Commission has concluded, when it receives application for acquisition of the whole stocks of a company which comes under all of the following conditions from a company (excluding one principally engaged in buying and selling of goods), that it does not constitute a substantial restraint of competition in any particular field of trade, and thereby is not contrary to the public interest and has granted permission: 1. a company which stands in continuous close relation with regard to the supply of raw materials, semi-finished products, accessory parts, byproducts, waste material or goods or other economic benefits necessary for its business activities, or a company which stands in relation of utilization of patent invention or model utility, 2. a company which does not own stock in another company. In addition to such a case as prescribed in the preceding parapraph, in case a company (in case of acquisition of stock of an existing company, the company which desires to acquire stock and the company issuing the stock) desiring to acquire stock has explained the fact that such acquisition of stock complies with the conditions contained in each of the following items, the provisions of the preceding paragraph shall apply if it complies with other conditions prescribed in said paragraph although it will not own the whole stock of said company. 1. acquisition of stock issued to raise necessary funds, 2. acquisition of stock issued because acquisition of capital by means other than issue of stock was practically difficult, 3. acquisition of stock is not due to unfair methods of competition, 4. acquisition of stock of a company whose stack is not owned by a company standing in competition with the company which desires to acquire the stock; provided that, with regard to acquisition of stock of a company whose principal business is the purchase and sale of commodities, the foregoing shall apply only in case a company other than the company which desires to acquire stock does not own such stocks.

Article 11. Any company whose business is financial shall not own stocks in a company with which it is competing and which operates in the same field of financial business. No company whose business is financial and whose total assets (excluding unpaid-up capital stock, unpaid-up partnership share or claim rights against unpaid-up fixed funds) exceeds five million (5,000,000) yen shall acquire stock of another company in case by so doing it holds in excess of five percent (5%) of the total issued stock of said company. The provisions of the preceding two paragraphs shall not apply to such a case coming under any one of the following items: 1. in case of ownership of stocks by a company engaged in the securities business in the normal course of its business, 2. in case of ownership of stocks by a company other than one engaged in the securities business and whose business is financial by underwriting for the purpose of public sale, 3. in case of ownership of stocks by acceptance of a security trust wherein the truster is the benificiary, provided that the foregoing shall apply ably when the truster exercises the voting right. In case of ownership of such stocks as coming under item 1 or item 2, of the preceding paragraph, said ownership of stocks for a period in excess of one (1) year from the date of acquisition of said stocks shall be limited to such a case where previous permission of the Fair Trade Commission has been obtained.

Article 12. No company shall own debentures (excluding batik financing debentures) of another company in case by so doing it holds in excess of an amount equivalent to twenty-five percent (25%) of the capital (the definition of which shall be total capital stock, total amount of partnership shares, aggregate amount of total capital stock and total amount of partnership shares, or total fixed funds) of said company. The provisions of paragraph 3 and paragraph 4 of the preceding Article shall apply mutatis mutandis to such a case as provided for by the preceding paragraph. In this case, "stocks" shall read "debentures."

Article 13. No officer or an employee (the definition of which shall be a person other than an officer in regular employment of a company in business) of a company shall hold concurrently a position as an officer in another company in any one of the following cases: 1. in case both of the companies are in competition with one another, 2. in case one fourth (1/4) or more of the officers of either of the two (2) companies are holding concurrently positions as officers in a third company. No officer of a company shall, in any case, hold a position of officer in a company in four (4) or more companies.

Article 14. No person shall acquire stock in two (2) or more companies in competition with one another, when the effect of such ownership will substantially restrain competition in any particular field of trade and thereby is contrary to the public interest. Any person whose ownership of stocks of two (2) or more companies in competition with one another will be in excess of ten percent (10%) of the issued stock of said companies shall receive the permission of the Fair Trade Commission with regard to acquisition of said stocks. No officer of a company shall acquire stock of another engaged in competition with said company. In case an officer of a company, when assuming his position as an officer in said company, owns stock of another company in competition with said company, he shall file a report of said fact with the Fair Trade Commission. The Fair Trade Commission may, in case it receives such a report as provided for in the preceding paragraph, and when it deems that such ownership of stock may substantially restrain competition in any particular field of trade and thereby be contrary to the public interest, order the disposal of the whole or a part of said stocks or to take any other necessary measures.

Article 15. No company shall effect a merger without the permission of the Fair Trade Commission. The Fair Trade Commission, in case it receives an application for permission as provided for by the preceding paragraph, shall not grant permission when the said merger falls under any one of the following items and thereby is deemed to be contrary to the public interest: 1. in case the merger does not contribute to the rationalization of production, supply or management, 2. in case substantial disparities in bargaining power will arise due to the merger, 3. in case the merger may cause a substantial restraint of competition in any particular field of trade, 4. in case the merger has been coerced by unfair methods of trade.

Article 16. No company shall, without receiving permission of the Fair Trade Commission, receive transfer of the whole or a part of the business of another company, lease the whole of the business of another company, receive entrustment of the management of another company, or enter into a contract which provides for a joint profit and loss account with another company. The provisions of paragraph 2 of the preceding Article shall apply mutatis mutandis to such a case as provided for in the preceding paragraph, provided that "said merger" shall read "said act."

Article 17. No act, in whatever form or manner, shall be committed to evade such prohibitions or restrictions as provided for in Article 9 to the preceding Article inclusive.

Article 18. The Fair Trade Commission may, when a company is established in violation of the provisions of paragraph 1 of Article 9, or when companies have merged in violation of the provisions of paragraph 1 of Article 15, institute a suit to have said establishment or merger be declared null and void.

Chapter V. Unfair Methods of Competition

Article 19. No entrepreneur shall employ unfair methods of competition.

Article 20. In case there exists an act in violation of the preceding Article, the Fair Trade Commission may order the cessation of said act in accordance with the procedure provided for by Section 2 of Chapter 8.

Chapter VI. Exemptions

Article 21. The provisions of this Law shall not apply to such business activities relating to production, sales or supply of persons or parties operating railroad, electricity, gas and other enterprises whose business constitutes, by the very nature of said business, a monopoly.

Article 22. The provisions of this Law, in case a special law exists for a certain enterprise, shall not apply to such legitimate acts of an entrepreneur as are executed in accordance with the provisions of said Law or order under said Law. Such special Law as mentioned in the preceding paragraph shall be stipulated by separate law.

Article 23. The provisions of this Law shall not apply to such an act as recognized to be within the execution of rights under the Copy-right Law, the Patent Law, the Model Utility Law, the Design Law and the Trade-mark Law.

Article 24. The provisions of this Law shall not apply to an association (including federation of associations) which conforms with each of the following qualifications and which, moreover, has been established in accordance with the provisions of seperate law, provided that the foregoing shall not apply to such a case where there is employment of unfair methods of competition or a restraint of competition in any particular field of trade resulting in an undue enhancement of price. 1. the purpose shall be mutual-aid among small-scale entrepreneurs of consumers, 2. establishment shall be voluntary, and participation and with-drawal of members shall be at will, 3. each member shall possess equal voting rights, 4. in case distribution of profits among members is executed, limits for distribution shall be fixed by law or order, or under the articles of association.

Chapter VII. Indemnification of Damages

Article 25. Any entrepreneur who has effected private monopolization or undertaken unreasonable restraints of trade, or who has employed unfair methods of competition, shall be liable of indemnification of damages caused by said act to the person or party who sufferred damages. No entrepreneur shall be exempted from the liability prescribed in the preceding paragraph by certification of the non-existance of wilfulness or negligence on his part.

Article 26. The right to claim indemnification of damages as provided for by the preceding Article may not be exercised in court until the decision under the provisions of paragraph 3 of Article 48 or Article 52 has been declared final and conclusive. The right stipulated in the preceding paragraph shall be barred by limitations after the elapse of three (3) years from the day of the decision in said paragraph has become final and conclusive.

Chapter VIII. The Fair Trade Commission

Section 1. Organization and Powers

Article 27. In order to ensure proper operation of this Law, there shall be established the Fair Trade Commission. The Fair Trade Commission shall be under the jurisdiction of the Prime Minister.

Article 28. The Commissioners of the Fair Trade Commission shall perform their functions independently.

Article 29. The Fair Trade Commission shall be composed of seven (7) Commissioners. The Commissioners shall be appointed by the Prime Minister with the consent of the House of Representatives from among persons whose age is thirty-five (35) years or more and who are of learning and experience in legal or economic fields. The Commissioners shall be civil service officials.

Article 30. The term of office for the Commissioners shall be five (5) years. The term of office for a Commissioner who has been appointed to fill a vacancy shall be the remainder of the term of office for his predecessor. A Commissioner may be reappointed. A Commissioner shall retire from office upon reaching the age of sixty-five (65) years. Measures to be taken when a Commissioner finishes his term of office or when a vacancy occurs during the period of time that the Diet is in recess or the House of Representatives is dissolved, shall be provided for by separate order.

Article 31. A Commissioner shall not be removed, against his will, from office during his tenure of office except in such a case coming under any one of the following items: 1. when he has been declared legally incompetent or quasi-incompetent, 2. when he has been dismissed from civil service by judgment, 3. when he has been sentenced for a violation of the provisions of this Law, 4. when he has been sentenced to imprisonment or heavier penalty. 5. when the Fair Trade Commission has decided that he is incapable of discharging his duties on account of Physical or mental disabilities.

Article 32. With respect to such a case as provided for in item 1 or item 3 to item 5 inclusive of the preceding article, the Prime Minister shall remove from office the Commissioner concerned.

Article 33. The Prime Minister shall appoint the Chairman of the Fair Trade Commission from among the Commissioners. The Chairman shall preside over the affairs of the Fair Trade Commission and represent it. The Fair Trade Commission shall select in advance a person from among the Commissioners who will act in place of the Chairman in case he is incapacitated.

Article 34. Meetings of the Fair Trade Commission shall not be opened nor shall decisions be made without the attendance of the Chairman and three (3) or more of the commissioners. The proceedings of the Fair Trade Commission shall be decided by a majority vote. In case the votes are evenly decided, the Chairman shall have the power to decide. Decisions of the Fair Trade Commission with respect to the provisions of item 5 of Article 31 shall be made, notwithstanding the provisions of the preceding paragraph, with the unanimous concurrence of all the commissioners except that of the commissioner concerned.

Article 35. In order to execute the business of the Fair Trade Commission, a staff office shall be established and attached to it, and necessary personnel shall be maintained. Personnel provided for in the preceding paragraph shall be civil service officials. Public prosecutors, attorneys practicing at the time of appointment and those qualified to become attorneys shall be included in the personnel as provided for by paragraph 1 of this Article. Duties of public prosecutors included in the personnel as provided for in the preceding paragraph shall be limited to criminal offenses in violation of the provisions of this Law.

Article 36. Emoluments of the Chairman, other commissioners and personnel of the Fair Trade Commission shall be prescribed by separate order. Emoluments of the Chairman, and other commissioners shall not be reduced in amount against the will of the recipients during their tenure of office.

Article 37. The Chairman and other commissioners as well as such personnel of the Fair Trade Commission as designated by separate order shall not engage in the following activities: 1. to become a member of the Diet or that of an assembly of a local public body or to engage actively in political activities, 2. to engage in any other remunerative work except in such a case as permitted by the Prime Minister, 3. to engage in commerce or any other occupation for pecuniary gain.

Article 38. Persons provided for in the preceding Article shall not express their views to the public on the existance or non-existence of facts pertaining to a case, or on the application of law to a case. However, the foregoing shall not apply where provided for in this Law and to publication of conclusions reached in critical studies on this Law.

Article 39. The Chairman and other commissioners and personnel of the Fair Trade Commission or persons who have held such positions in the Fair Trade Commission shall not divulge or make surreptitious use of trade secrets of entrepreneurs which they may have acquired in course of execution of their duties.

Article 40. The Fair Trade Commission may, if necessary for the performance of its functions, order government offices, juridical persons established by special law or ordinance, entrepreneurs or organization of entrepreneurs, or their personnel to appear before the Fair Trade Commission, or may require them to submit necessary reports, information or data.

Article 41. The Fair Trade Commission may, if necessary for the performance of its functions, entrust government officers, juridical persons established by special law or ordinance, educational institutions, entrepreneurs or organizations of entrepreneurs, or their personnel or persons of learning and experience with the work of compiling necessary reports or research.

Article 42. The Fair Trade Commission may, if necessary for the performance of its functions, held public hearings and obtain views of the general public.

Article 43. The Fair Trade Commission may, in order to ensure proper operation of this Law, make public necessary matters with the exception of the trade secrets of entrepreneurs.

Article 44. The Fair Trade Commission shall submit to the Diet, through the Prime Minister, an annual report on the various aspects of the enforcement of this Law. The Fair Trade Commission may submit to the Diet, through the Prime Minister, its views on matters necessary to attain the purpose of this Law.

Section 2. Procedure

Article 45. Any person may, when he considers that a violation of the provisions of this Law exists, report said fact to the Fair Trade Commission and demand necessary measures to be taken. In case such a report as provided for by the preceding paragraph is received, the Fair Trade Commission shall make necessary investigations with respect to the case. The Fair Trade Commission may, when it considers that a violation of the provisions of this Law exists, take upon its own authority suitable measures.

Article 46. The Fair Trade Commission may, in order to conduct necessary investigations with regard to a case, take the following measures: 1. summon and question persons connected with a case, or witnesses or cause them to submit their views or reports. 2. summon experts and cause them to give expert testimony. 3. order persons possessing accounting books, documents, and other matter to submit the same, and detain any submitted matter. 4. conduct spot inspections of any place of business or other necessary places of the persons connected with a case and examine conditions of business operation, accounting books, and other matter. The Fair Trade Commission may, in case it deems it to be proper cause such of its personnel as prescribed by separate order to take such measures as provided for by the preceding paragraph. In case a spot investigation is to be conducted by said personnel in accordance with the provisions of the preceding paragraph, they shall be required to carry with them a warrant.

Article 47. The Fair Trade Commission shall, when necessary investigation of a case has been made, make a record of the gist thereof and, in case any measures as provided for in the preceding Article have been taken, specifically set forth plainly any result thereof.

Article 48. The Fair Trade Commission may, when it deems that an entrepreneur has effected a private monopolization or has undertaken an unreasonable restraint of trade or has employed unfair methods of competition, or when it deems that undue substantial disparities in bargaining power exist, recommend said entrepreneur to take suitable measures. In case a recommendation has been made pursuant to the provision of the preceding paragraph, the entrepreneur shall notify the Fair Trade Commission whether or not he will accept the said recommendation. In case the entrepreneur has accepted the recommendation, the Fair Trade Commission may, render a decision on the lines of the recommendation without reporting to the procedure of a hearing.

Article 49. With respect to any case coming under paragraph 1 of the preceding Article, the Fair Trade Commission may, in case it deems that to put the case to the procedure of a hearing would be in the public interest, open proceedings to hear the said case in a hearing. The procedure of a hearing shall commence from the time a notice of decision to open proceedings of a hearing is sent to an entrepreneur.

Article 50. The notice of decision to open proceedings of hearing shall state the essential points of the case, and the date and place of hearing as well as the fact that the entrepreneur is required to attend. The date of the hearing shall be fixed on a day later than thirty (30) days after the day that the notice of decision to open proceedings of a hearing is sent.

Article 51. An entrepreneur shall without delay, upon receipt of the delivery of the notice of decision to open proceedings of a hearing, file a reply with the Fair Trade Commission.

Article 52. An entrepreneur or his agent may, in the hearing, state its reasons why an order of the Fair Trade Commission to take measures in the particular case pursuant to the provisions of Article 7, paragraph 1 of Article 8 or Article 20 should be unreasonable, submit supporting evidence, demand of the Fair Trade Commission to interrogate necessary witnesses, to order expert testimony of experts, to order holders of accounting books and other matter to submit them or to make necessary spot investigation and examine aspects of operation and property, accounting books and other matter, or may interrogate witnesses or experts who have been ordered to attend the hearing by the Fair Trade Commission. An entrepreneur may appoint an attorney or any other appropriate person as his agent.

Article 53. All hearings shall be open. However, in case it is deemed necessary to protect the trade secrets of an entrepreneur or necessary in the public intetest, a hearing may be closed to the general public. A stenographer shall attend all hearings to record statements made therein.

Article 54. The Fair Trade Commission shall, when it is deemed after a hearing that an entrepreneur has effected private monopolization, has undertaken an unreasonable restraint of trade, or has employed unfair methods of competition or that substantial disparities in bargaining power exist, by a decision, order the party connected with the case to take such measures as provided for by Article 7, paragraph 1 of Article 8 or Article 20.

Article 55. Decisions shall be made by a meeting of the Chairman and other commissioners. The provisions of paragraph 1 and paragraph 2 of Article 34 shall apply mutatis mutandis to such a meeting as provided for in the preceding paragraph.

Article 56. Meeting of the Fair Trade Commission shall not be opened to the public.

Article 57. Decisions shall be rendered in writing together with such findings of fact made by the Fair Trade Commission and application of law thereto, and the Chairman and the commissioners attending the meeting shall sign them and affix seals thereto. A minority opinion may be attached to the written decision.

Article 58. Decisions shall take effect from the time copies thereof are served upon the entrepreneur.

Article 59. The Fair Trade Commission may, if deemed necessary, on its own authority, require a third party interested in the result of the decision to participate in the proceedings for a decision as a concerned party, provided that it shall previously interrogate the entrepreneur and said third party.

Article 60. Any government office or public organization concerned with a case may, if deemed necessary in the public interest, participate in the proceedings for a decision as a concerned party.

Article 61. Any government office or public organization concerned with a case may, in order to protect the public interest, express its views to the Fair Trade Commission.

Article 62. In case the Fair Trade Commission orders the cessation of a violating act or any other measures to be taken in accordance with the provisions of Article 54, an entrepreneur may stay execution of said order until said decision becomes final and conclusive by depositing such bond of security as fixed by the Court. Court action as provided by the preceding paragraph shall be executed in accordance with the Simplified Litigation Procedure Law.

Article 63. In case an entrepreneur posts bond in accordance with the provisions of paragraph 1 of the preceding Article and when such a decision as provided for by paragraph 1 of the preceding Article becomes final and conclusive, the Court may, upon representation on part of the Fair Trade Commission, confiscate the whole or a part of such bond or security as posted. The provisions of paragraph 2 of the preceding Article shall apply mutatis mutandis to the court action stipulated in the preceding paragraph.

Article 64. The Fair Trade Commission may, after it has rendered a decision in accordance with the provisions of Article 57, if deemed specially necessary, take such measures as provided for by Article 46, or may have its personnel take said measures.

Article 65. The Fair Trade. Commission shall, when it receives an application for permission or approval in accordance with the provisions of paragraph 3 of Article 6, paragraph 2 or paragraph 3 of Article 10, paragraph 4 of Article 11 (including where it is applied mutatis mutandis in paragraph 2 of Article 12), paragraph 2 of Article 14, paragraph 1 of Article 15, or paragraph 1 of Article 16, and when it deems said application to be without grounds, dismiss said application by a decision. The provisions of paragraph 2 of Article 45 shall apply mutatis mutandis to such a case of application for permission as provided for in the preceding paragraph.

Article 66. The Fair Trade Commission may, with respect to an application for permission or approval as provided for by the preceding Article, revoke by a decision, after procedure of a hearing said permission or approval when conditions for said permission or approval have ceased to exist or have changed. The Fair Trade Commission may, when certain facts serving as the basis for a decision have ceased to exist or have undergone a change due to changes in economic conditions and other reasons, and when it becomes apparent that further support of said decision is unreasonable as well as contrary to the public interest, revoke or modify its decision by separate decision after procedure of a hearing.

Article 67. The Court may, if deemed of urgent necessity, upon complaint of the Fair Trade Commission, order an entrepreneur temporarily to cease an act suspected of private monopolization, unreasonable restraint of trade or unfair method of composition, or may revoke or modify said order. The provisions of paragraph 2 of the Article 62 shall apply mutatis mutandis to the court action stipulated in the preceding paragraph.

Article 68. Any entrepreneur may, by depositing such bond or security as fixed by the Court, stay, execution of an order as provided for by paragraph 1 of the preceding Article. The provisions of Article 63 shall apply mutatis mutandis to confiscation of such deposited bond or security as provided for by the preceding paragraph.

Article 69. Any interested party may demand of the Fair Trade Commission perusal or copying of the records of a case or may ask the Fair Trade Commission for the original, the copy or abridged copy of the decision.

Article 70. Necessary matters with respect to procedure for investigation and hearings of the Fair Tradc Commission and other dispositions of cases as well as those with respect to deposits prescribed in paragraph 1 of Article 62 and paragraph 1 of Article 68 other than those provided for in this Law shall be prescribed by separate order.

Section 3. Miscellaneous Provisions

Article 71. When the Fair Trade Commission designates unfair methods of competition in accordance with the provisions of item 7 of paragraph 6 of Article 2, it shall hear the views of such entrepreneurs as operating the same line of business as that of an entrepreneur who employs those methods of competition it is about to designate, and hold a public hearing to obtain the views of the general public and thereupon draw up a tentative plan for designation which shall be published, and should there be, any objection by an entrepreneur to such tentative shall make the designation after giving due consideration to said objection.

Article 72. Designation of unfair methods of competition in accordance with the provisions of item 7 of paragraph 6 of Article 2 shall be executed by public notice. Such designation as provided for in the preceding paragraph shall come into effect thirty (30) days after the date of its public notice.

Article 73. The Fair Trade Commission shall, if it considers that a criminal violation of the provisions of this law exists, file an accusation with the Public Procurator-General. In case disposition has been made not to prosecute a case which is the subject of such accusation as provided for in the preceding paragraph, the Public Procurator-General shall, without delay, submit through the Minister of Justice a written, report, stating the said fact as well as reasons therefore, to the Prime, Minister.

Article 74. In case the Public Procurator-General considers that a criminal violation of the provisions of this law exists, he may notify the Fair Trade Commission of this fact and obtain an investigation and a report on the results thereof.

Article 75. Witnesses or experts who have been ordered to appear to give expert testimony in a hearing in accordance with the provisions of item 1 or item 2 of paragraph 1 or paragraph 2 of Article 4 may claim such travelling expenses and allowances as provided for by separate order.

Article 76. The Fair Trade Commission may, with respect to its internal rules and to its procedure for handling cases, establish separate regulations.

Chapter IX. Legal Suits

Article 77. Any party having objection to a decision of the Fair Trade Commission may institute a suit for revocation or modification of such decision before the Court, provided that the foregoing shall not apply when thirty (30) days have elapsed after the day on which the decision has become effective. In suits instituted under the preceding paragraph, the Fair Trade Commission shall be the defendant.

Article 78. In case a suit is received by the Court, it shall without delay call on the Fair Trade Commission for transmission of the records (including testimonies of parties concerned with a case, witnesses or experts and stenographic records and any other matter that may be used as evidence in court).

Article 79. Institution of a suit as provided for by paragraph 1 of Article 77 shall not suspend the execution of a decision of the Fair Trade Commission, provided that the Court may, if deemed necessary, at any time, upon complaint from the interested party or on its own authority order suspension of execution of the whole or a part of a decision of the Fair Trade Commission, or may revoke or modify such Court action.

Article 80. Finding of facts made by the Fair Trade Commission, when substantial evidence exists to prove said finding, shall be binding upon the Court. Whether sucn substantial evidence as provided for in the preceding paragraph exists or not shall be determined by the Court.

Article 81. A concerned party may plead to the Court to submit new evidence relevant to the said case only in such a case as coming under either of the following two items: 1. in case the Fair Trade Commission failed to take cognizance, without good cause of said evidence, 2. in case, at a hearing of the Fair Trade Commission, it was impossible to submit said evidence, without negligence on the part of the party. In either of the two cases provided for by both items of the preceding paragraph, the concerned party shall bear burden of showing cause for reasons thereof. In case the Court deems that a necessity for examining such new evidence as provided for by the provisions of paragraph 1 of this Article exists, it shall return the case back to the Fair Trade Commission and order it to take suitable measures after examining said evidence.

Article 82. The Court may revoke any decision of the Fair Trade Commission when it comes under either one of the following items: 1. in case the facts upon which the decision is based are not supported by substantial evidence, 2. in case the decision is contrary to the Constitution and other law. The Court may, when it deems that the contents of a decision with respect to application of the Constitution and other law is arbitrary or unreasonable, modify said decision.

Article 83. The Court may, when it deems that a decision of the Fair Trade Commission should be modified, return the case to it indicating such modifications to be made.

Article 84. When a suit for indemnification of damages has been filed in accordance with the provisions of Article 25, the Court shall without delay obtain the opinion of the Fair Commission with respect to the amount of damages caused by such violation of said Article. In case a claim for indemnification in accordance with the provisions of Article 25 is being filed in Court in order to off-set a cross or counter claim, the provisions of the preceding paragraph shall be applied mutatis mutandis.

Article 85. Jurisdiction of primary trials of any suit coming under any one of the following items shall rest with the Tokyo High Court: 1. a suit concerning a decision of the Fair Trade Commission, 2. a suit concerning indemnification of damages as provided for by Article 25, 3. a suit concerning an offence as provided for by Article 89 and Article 90.

Article 86. Any case provided for by paragraph 1 of Article 62, paragraph 1 of Article 63, (including such a case where said provisions are applied mutatis mutandis in paragraph 2 of Article 68), paragraph 1 of Article 67 and Article 97 shall become the exclusive jurisdiction of the Tokyo High Court.

Article 87. A panel of judges invested with the jurisdiction to hear exclusively all suit cases under Article 85 and such cases as provided for by the preceding Article shall be established within the Tokyo High Court. The number of judges of the panel provided for in the preceding paragraph shall be five (5).

Article 88. No appeal shall be allowed against court procedings in such cases as provided for in the preceding Article except on grounds that an unreasonable determination was made during said court procedings to whether any law, order, regulations, or disposition was in conformity with the Constitution, or that a court judgment was contrary to law.

Chapter X. Penalties

Article 89. Any person or party who, in violation of the provisions of Article 3, effects a private monopolization or undertakes an unreasonable restrain of trade shall be punished by a penal servitude for not more than three (3) years or by a fine not more than fifty thousand (50,000) yen. Any attempted offense of the preceding paragraph shall be punished.

Article 90. Any person or party coming under any one of the following items shall be punished by a penal servitude for not more than two (2) years or by a fine not more than thirty thousand (30,000) yen: 1. one who, in violation of the provisions of paragraph 1 of Article 4, undertook a concerted action, 2. one who, in violation of the provisions of Article 5, establishes or organizes a juridical person or other organization or participates in such organization, 3. one who, in violation of the provisions of paragraph 1 of Article 6, participated in an agreement or contract, 4. one who fails to abide by such a decision as provided for by paragraph 3 of Article 98 or Article 54 after it became final and conclusive.

Article 91. Any person or party coming under any one of the following items shall be punished by a penal servitude for not more than one (1) year or by a fine not more than twenty thousand (20,000) yen: 1. one who, in violation of the provisions of paragraph 3 or paragraph 4 of Article 6, participated in an agreement or contract, 2. one who established a holding company in violation of the provisions of paragraph 1 of Article 9, 3. one who acquired or owned stock in violation of the provisions of paragraph 1 of Article 10 or paragraph 1, paragraph 2 or paragraph 4 of Article 11, 4. one who acquired or owned debentures in violation of the provisions of paragraph 1 of Article 12 or paragraph 4 of Article 11 as applied mutatis mutandis pursuant to the provisions of paragraph 2 of Article 12, 5. one who assumed a position as an officer of a company in violation of the provisions of Article 13, 6. one who acquired stock in violation of the provisions of paragraph 1 to paragraph 3 inclusive of Article 14 and failed to report said fact in violation of the provisions of paragraph 4 of Article 14, or who failed to abide with an order of the Fair Trade Commission as provided for by paragraph 5 of Article 14 after said order became final and conclusive, 7. one who, in violation of the provisions of Article 16, received transfer of the whole or a part of the business of another company, leased the whole business of another company, received entrustment of management of another company, or entered into a contract providing for a ioint profit and loss account with another company, 8. one who violated the provisions of Article 17.

Article 92. Any person or party guilty of any of the offenses prescribed in the preceding three (3) Articles may, according to circumstances, be punished by both penal servitude and a fine.

Article 93. Any person or party who has violated the provisions of Article 39 shall be punished by penal servitude for not more than one (1) year or a fine not more than five thousand (5,000) yen.

Article 94. Any person who refuses, obstructs or evades such inspection as provided for by the provisions of item 4 of paragraph 1 or paragraph 2 of Article 46 shall be punished by a penal servitude for not more than six (6) months or by a fine not more than one thousand (1,000) yen.

Article 95. When a representative of a juridical person or an agent, an employee, or any other person in the service of a juridical person or of an individual has committed a violation as provided for by Article 89, Article 90, item 1 to item 4 inclusive as well as item 6 to item 8 inclusive of Article 91, or Article 94 with respect to the business or property of said juridical person or individual, not only shall the offender be punished but said juridical person or said individual shall also be punished by such fine as provided for by the respective Articles.

Article 96. Any offience under Article 89 or Article 90 shall be considered after filing of an accusation by the Fair Trade Commission. Such accusation as provided for in the preceding paragraph shall be made in writing. The Fair Trade Commission may, when filing such accusation as provided for in paragraph 1 of this Article in case it deems that such sentence as provided for in item 1 of paragraph 1 of Article 100 is called for with respect to an offience in said accusation, state said fact in such written accusation as provided for in the preceding paragraph. Such accusation as provided for by paragraph 1 of this Article shall not be revoked after institution of public prosecution.

Article 97. Any person or party who has violated a decision given under paragraph 3 of Article 48 or Article 54 shall be liable to a non-criminal fine for not more than fifty thousand (50,000) yen, provided that the foregoing shall not apply when said act should be punished by criminal penalty.

Article 98. Any person or party who has violated a court determination given under paragraph 1 of Article 67 shall be liable to a non-criminal fine for not more than thirty thousand (30,000) yen.

Article 99. Any person or party coming under any one of the following items shall be liable to a non-criminal fine for not more than five hundred (500) yen: 1. one who, in violation of measures taken by the Fair Trade Commission in accordance with the provisions of Article 40, failed to appear, failed to submit reports, information or data, or submitted false reports, information or data, 2. one who, in violation of measures taken against the parties concerned with the case and witnesses in accordance with the provisions of item 1 of paragraph 1 or paragraph 2 of Article 46, failed to appear, failed to give testimony, gave false testimony, or failed to submit reports or submitted false report, 3. one who, in violation of measures taken against an export in accordance with the provisions of item 2 of paragraph 1 or paragraph 2 of Article 45, failed to appear, failed to give export testimony or gave false export testimony, 4. one who, in violation of measures taken against a holder of matter in accordance with the provisions of item 3 of paragraph 1 of paragraph 2 of Article 45, failed to submit such matter.

Article 100. In such a case coming under Article 89 or Article 90, the Court may, according to circumstances, render the following sentences at the same time as when the verdict is given, provided that such a sentence as coming under item 1 shall be issued only when said patent right, or license right for patented invention belongs to the offender: 1. sentence to effect that said patent right or license right for patented invention shall be revoked, 2. sentence to effect that becoming a party to a contract with the Government shall be prohibited for a period of not less than six (6) months and not more than three (3) years after the date when the verdict becomes final and conclusive. In case a verdict including such a sentence as provided for by item 1 of the preceding paragraph becomes final and conclusive, the Court shall transmit a copy of the verdict to the President of the Bureau of Patents and Standards. The President of the Bureau of Patents and Standards shall, when he receives such a transmission as provided for by the preceding paragraph, revoke the patent under said patent rights of revoke said license right for patented invention.

Supplementary Provisions:

Article 101. The date for enforcement of this law shall be fixed by separate order for each provision.

Article 102. Any contract which actually exists at the time for the enforcement of each provision of this law and which is in violation of said provision shall become null and void as from the date for enforcement of said provision.

Article 103. The provisions of this law shall not apply to such an act executed by an entrepreneur in accordance with the reorganization plan as provided for by the Enterprise Reconstruction and Reorganization Law or with the reorganization plan as provided for by the Financial Institutions Reconstruction and Reorganization Law.

Article 104. The disposition of any juridical person or other organization actually existing at the time for enforcement of the provisions of Article 5 and undertaking control of distritution of the whole or a part of materials and products by method of exclusive purchase or sale, or undertakes allocation of the whole or a part of materials and products shall be provided for by separate order.

Article 105. Disposition of a holding company actually existing at the time for the enforcement of this Law shall be provided for separate order.

Article 106. The provisions of Article 9, Article 10, Article 12, paragraph 1 and paragraph 2 of Article 14, the preceding Article, Article 107 and Article 110 shall not apply to the North-east Development Co., Ltd.(the Tohoku Kogyo Kabushiki Kaisha).

Article 107. Disposition of stocks or debentures owned by a company other than one whose business is financial at the time for enforcemen of the provisions of Article 10 or Article 12 in violation of said provisions shall be provided for by separate order.

Article 108. Disposition of stocks or debentures owned by a company whose business is financial at the time for enforcement of the provisions of Article 11 or Article 12 in violation of said provisions shall be provided for by separate order.

Article 109. Any person holding concurrently positions as an officer of a company at the time for enforcement of the provisions of Article 13 in violation of the provisions of paragraph 1 of said Article shall resign from all except any one of such positions within a period of ninety (90) days of the date for enforcement of said article. Any person holding positions as an officer in four (4) or more companies on the date for enforcement of the provisions of Article 13 shall resign from all except any one of such positions within a period of ninety (90) days of the date for enforcement of said article.

Article 110. Disposition of stocks actually owned at the time for enforcement of the provisions of Article 14 in violation of the provisions of said article shall be provided for by separate order.

Article 111. Any person or party coming under any one of the following items shall be punished by penal servitude for not more than one (1) year or by a fine not more than five thousand (5,000) yen: 1. one who violated the provisions of Article 109, 2. one who violated an order given in accordance with the provisions of Article 104, Article 105, Article 107, Article 108, or the preceding article.

Article 112. In case a representative of juridical person, or an agent, an employee or any other person is in service of a juridical person or of an individual violates the provisions of item 2 of the preceding article with respect to the business or property of said juridical person or individual, not only shall the offender be punished but said juridical person or said individual shall also be punished by such fine as provided for in the preceding article.

Article 113. The Chairman and commissioners of the Fair Trade Commission may attend meetings of the Holding Company Liquidation Commission or those of the Securities Coordinating Liquidation Committee and express their views.

Article 114. Terms of Office for the initial commissioners of the Fair Trade Commission shall be one (1) year for one (1) comissioner, two (2) years for two (2) commissioners, three (3) years for one (1) commissioner, four (4) years for two (2) commissioners and five (5) years for one (1) commissioner in accordance with such appointments as the Prime Minister may make.