Law and Economics in Japanese Competition Policy by Koki Arai

Author:Koki Arai
Language: eng
Format: epub, pdf
ISBN: 9789811381881
Publisher: Springer Singapore

6 Non-price Ristricted Conduct

Whether a company’s non-price limiting behavior is illegal is determined by examining its effect on market competition for each activity type and specific case. It is not only in the case where the business operator limits contractors to contractors as to whether or not the business operator performs non-price limiting acts, and also to the economy of business partners who do not comply with the business operator’s request. It is also judged that the restriction act is being carried out even if the effectiveness of the restriction is ensured by using some artificial means such as imposing the above disadvantages.

For example, as part of marketing, a business operator may restrict a business partner to a transaction with his/her competitor, and management advantages are also pointed out for these. However, depending on the market position of the business operator who carries out such restrictions, such restrictions may lead to a situation where the business activities of existing competitors may be impeded or barriers to entry may be raised.

In the case where the market closing effect is produced by a leading business operator in the market, for example, performing an act of trading with a trading business operator with a condition binding so as not to trade with its competitor, such act falls under unfair trade practives and is illegal.

Also, when multiple operators carry out such restrictions in parallel, the market closing effect is likely to occur as a whole market as compared with the case where only one company carries out restrictions.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.