CABLE TV FIRM HIT BY FTC
KEYWORDS: ANTITRUST, ANTIMONOPOLY LAW, FAIR TRADE COMMISSIONS, FTC
In June, in a highly unusual move, the Fair Trade Commission moved for an emergency injunction with the Tokyo High Court against price cutting by the lead cable radio company in Japan which had over an 81% market share before it started cutting its prices. The larger firm, Usen, was also negotiating with the smaller firm to buy it out. The smaller firm  had an 18% market share. Usen was offering a 20% discount and a year of free service to the customers of the smaller firm. In seven months, the smaller firm had lost 10% of its customers. This was the first time the FTC had sought such an emergency order since 1975. Later the FTC withdrew the application to the Tokyo High Court after Usen agreed to stop the practices. The FTC issued an administrative order to stop the practices.

Copyright 2005. All rights reserved Attorney Roderick H. Seeman

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