Big Tech targets to be named at start of Japan antitrust probes – Nikkei Asia

TOKYO -- The Japan Fair Trade Commission will publicizeinformation on antitrust cases against big technology companies earlierin the process, looking to gather evidencequicklyand react more effectively to a fast-changing market.

The antitrust watchdog will announce the names of investigation targets and the allegations against them toward the start of the probe when deemed necessary. The change is included in a document released Thursday on the commission's policies for an increasingly digital economy.

"We need to improve our systems and capabilities for gathering information, especially for dealing with concerns in the fast-changing digital market," Chairman Kazuyuki Furuya told reporters.

Antitrust investigation details typically are not made public until the JFTC has closed the case or penalized the company, as doing so could affect the target's business or provide an opportunityto destroy evidence.

The agency will resolve detailssuch as how and under what circumstances to make the announcements. Companies to be named under the new policy will be notified in advance.

Making this information widely available offers advantages under some circumstances, such as in recent cases involving tech giants abusing their dominant bargaining position to force vendors on e-commerce platforms to accept unfavorable terms. Publicizing such investigations could help gather information from others harmed by such conduct.

Given how swiftlybusiness models change in the tech industry, the agency also worries that the usual time-consuming process of collecting evidence behind the scenes may not be fast enough to address illegal conduct.

And unlike in cases of collusion, for example, the practices of tech companies are usually widely known, so the JFTC expects early disclosure ofinvestigations to have little effect on their operations.

Antitrust authorities in markets includingthe European Union, the U.K. and Germany already announce the names of probe targets. But the risk to companies' reputations makes it essential to have clear standards for doing so.

Announcing which companies are under investigation "would have a major impact on their activity, since the public would see it as a sign that they are likely guilty," said Yasuo Daito, a Japanese attorney and expert on antitrust law. "We should be extremely careful in choosing which cases to make public."

The commission also will seekexternal input on merger and acquisition cases, especially in the tech sector, at an earlier stage when necessary. Tech-related companies make up an increasing portion of the roughly 300 such cases screened by the JFTC yearly. The agency wants a better picture of the industry by hearing a wide range of opinions.

As part of this shift, the JFTC has begun seeking outside opinions on proposed acquisitions by Microsoft and Google.

The JFTC also will use information gained from surveys on antitrust issues in case reviews, with approval from their sources.

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Big Tech targets to be named at start of Japan antitrust probes - Nikkei Asia