Latest news with #JapanFairTradeCommission
Yomiuri Shimbun
3 hours ago
- Business
- Yomiuri Shimbun
Cartel Suspicion: Hotel Industry Practices Inviting Distrust
With the increase in inbound visitors and domestic travelers, the price of hotel rooms has been skyrocketing. The hotel industry needs to reform its opaque practices to avoid suspicions of unfair price hikes. The Japan Fair Trade Commission has issued warnings to 15 operators of hotels in Tokyo, urging them to prevent a recurrence of the practice of exchanging information on such matters as room rates, saying it could possibly constitute an 'unreasonable restraint of trade,' violating the Antimonopoly Law. Companies that were the target of the warnings included the operators of well-known hotels such as the Imperial Hotel, Tokyo and The Okura Tokyo. Representatives from each company reportedly held monthly meetings to exchange internal information such as room occupancy rates, average prices, reservations and pricing plans. The commission ultimately concluded that it could not confirm any price gouging practices, but it said some hotels explained during the investigation that they had used information from other companies as a reference for setting room rates. Such information exchange within the hotel industry could be construed by consumers as contributing to the rise in accommodation prices. This practice is said to have been going on for decades. The companies should take the JFTC's warning seriously. It must be said that the underlying issue is the collusive nature of the hotel industry. When deciding rates and services, it is said to be important to accurately predict demand. Similar meetings have reportedly been held among business hotels and hotels in regional areas as well. The commission has also issued requests to business associations to which those hotels belong, asking them to tell their members to be compliant with laws. It is important for the industry as a whole to strive to improve its behavior. Exchanging information between companies is not always problematic. Exchanging information on market trends and customer preferences to improve services is likely important. However, when information exchange between companies leads to price fixing, it can constitute a cartel. In such cases, consumers are forced to pay higher prices than the level set by price competition. Hotel room rates have been rising steadily. According to a private research firm, the average price of a room last year was ¥16,289, and there is data showing that it has increased by 40% from the level immediately before the COVID-19 pandemic. While there are inevitable factors such as rising labor and utility costs, many people still feel that accommodation prices are too high. It is important to avoid giving the impression that prices are being tacitly adjusted within the industry. In the industry, an increasing number of hotels are using artificial intelligence to predict future demand and set accommodation prices. It is hoped that the industry will move away from obsolete business practices and strive for fairly improving services. (From The Yomiuri Shimbun, June 10, 2025)
Yomiuri Shimbun
3 days ago
- Business
- Yomiuri Shimbun
Japan's Competition Regulator Says Tech Giants' Integration of Own Generative AI into Services Could Violate Antimonopoly Law
Yomiuri Shimbun file photo The Japan Fair Trade Commission head office in Chiyoda Ward, Tokyo The Japan Fair Trade Commission stated that tech giants integrating their own generative AI into their existing products with the intent to interfere with rival companies' business, this could constitute 'tie-in sales' or 'private monopolization' in violation of the Antimonopoly Law, in a report on its investigation into the generative AI market published Friday. There is a trend in the digital market for Big Tech companies, particularly Google, Apple, Facebook (now Meta), Amazon and Microsoft, to integrate their own generative AI services into their products. For example, Google search results include AI-generated summaries, while Microsoft has incorporated generative AI into office software like Word to assist with writing documents. According to the report, competing AI development companies expressed concerns to the JFTC that dominant firms could gain an advantage in the distribution of generative AI by integrating generative AI products into existing digital services and that it would become difficult to have users adopt latecomer firms' generative AI products. The JFTC noted that the integration of generative AI products into existing services by tech giants and other companies is a 'method of technological innovations and such an act itself is not immediately problematic under the Antimonopoly Law.' However, the commission also argued that if the purpose is to hinder competitors' businesses or raise barriers to entry, there is a risk of violating the law. Regarding the integration of generative AI on smartphones, related companies have expressed concerns. One company said 'restricting access to the software necessary to run our generative AI will cause a competitive disadvantage.' As Google and Apple have a monopoly on the the basic software for smartphones, the commission expressed the view that such access restrictions could also constitute 'interference with a competitor's transactions' in violation of the Antimonopoly Law. This is the first edition of the report, and the JFTC plans to continue to watch the situation and publish follow up reports as needed.
Yomiuri Shimbun
15-05-2025
- Business
- Yomiuri Shimbun
JFTC Releases Draft Guidelines for New Law Regulating Tech Giants; Examples of Illegal Conduct Provided to Prevent Circumvention
Yomiuri Shimbun file photo The building that houses the Japan Fair Trade Commission is seen in Chiyoda Ward, Tokyo. The Japan Fair Trade Commission (JFTC) announced Thursday draft guidelines for a new law that will regulate tech giants such as Apple and Google. The guidelines will provide detailed examples of legal and illegal conduct to prevent tech giants from circumventing the regulations. The guidelines also consider the safety and security of smartphone users, and provide examples of cases that do not constitute a violation, such as when the purpose is to ensure security. The draft guidelines for the Law on Promotion of Competition for Specified Smartphone Software include approximately 110 concrete examples of constitutes a violation and what does not. The JFTC plans to officially approve the guidelines as early as July after soliciting public comments, and to implement the new law and regulations on Dec. 18. Apple and Google will be required to submit a report on Dec. 18 stating their compliance with the regulations. The new law will require Apple to allow other companies to open app stores and prohibits the tech giants from unfairly discriminating against companies that distribute apps in screening and other processes.
Bloomberg
09-05-2025
- Business
- Bloomberg
Japan's Top Hotels Under Scrutiny For Potential Price Collusion As Tourism Booms
A group of Japan's top hotels, including Tokyo's historic Imperial Hotel and New Otani, have been sharing rates information in a potential breach of anti-monopoly rules, the country's antitrust watchdog said in a warning. Fifteen major operators were hit with the notice by Japan's Fair Trade Commission on Thursday, saying the companies shared commercially-sensitive information like price-setting policies, revenue per room, and projected occupancy rates. The exchanges may constitute unfair trading, the FTC said, and risk violating rules that cover cartel-like behavior.
Yomiuri Shimbun
27-04-2025
- Business
- Yomiuri Shimbun
Freelance Law: Companies Should Take Lead in Protecting Workers in Weak Position
Freelancers who receive jobs from companies are in a weak position. The Japan Fair Trade Commission has taken steps to correct problematic transactions and prevent these workers from being treated unfairly. It is hoped that company executives will take this opportunity to thoroughly comply with the rules for transactions with such workers. Based on the Freelance Law, the JFTC has issued administrative guidance to 45 companies in four industries, such as animation production, calling for them to fix how they commission freelancers. This is the first time such guidance has been given since the law took effect last November. The law requires, among other things, that businesses outsourcing work to freelancers specify the details of the work and the amount of remuneration in document form or by email and pay for the work within 60 days of completion. Freelancers, who are in a weak position, often receive job requests verbally, and some have experienced companies cutting their pay or asking them to work without days off to meet deadlines, taking advantage of their weak position. The law is aimed at rectifying such practices. The recently issued administrative guidance has revealed that unfair practices in transactions with freelancers were not corrected even after the law came into force. The JFTC needs to strengthen its monitoring. The JFTC had been investigating four industries that are said to have had many complaints from freelancers. These are the animation, gaming, fitness club and relaxation services industries. After the law went into effect, the JFTC made a thorough investigation of 77 companies in these four industries and found violations at slightly less than 60% of them, or 45 firms. Specifically, one company commissioned freelancers to create illustrations for games without specifying how much they would be paid or when the company would receive the work. Among fitness club operators and other companies, the JFTC has also found cases where specific payment due dates were not set. These are prime examples of the sorts of practices prohibited under the law. Companies that place orders must take the guidance seriously and put internal systems in place to ensure proper business transactions. According to a survey by the Internal Affairs and Communications Ministry, the number of people who primarily work as freelancers comes to 2.09 million. Freelancers are typically IT engineers, animators, writers or interpreters. As working styles diversify, it will become increasingly important to aim for a society where freelancers and companies can grow together. The government is looking to cultivate Japanese-made anime and games as growth industries by exporting them overseas. To strengthen the development of human resources in anime production, the government reportedly plans to establish a new support organization by the end of this fiscal year. Many young people aspire to become animators or game creators. Improving the working environment for freelancers will likely contribute to the development of these sectors. (From The Yomiuri Shimbun, April 27, 2025)
