UNFAIR TRADE PRACTICES – MONOPOLY POWER
KEYWORDS: ANTIMONOPOLY LAW, ANTITRUST, FTC,  MERGERS, CONSUMPTION TAX, FAIR TRADE COMMISSION

Just prior to the April 1 application of new price labeling policies requiring that retail prices include the consumption tax, the Fair Trade Commission went after 4 retailers for trying to get their suppliers to cut prices so that they would not have to show higher prices from including the consumption tax. Such actions could violate the Antimonopoly Law. The FTC was also investigating retailers that were trying to force down prices through rounding down prices, or forcing suppliers to take up the costs of re-labeling prices.

The FTC raided the offices of discount retailer Don Quijote on charges that the firm was demanding cash gifts and suppliers to also supply staff. This was an abuse of its superior position.

The Fair Trade Commission is now saying it will not find violations of the Antimonopoly Law if a merger of firms results in a 25% market share or less.

The FTC has also warned Japan Airlines System TO consult in advance if it seeks to raise prices. A condition for the approval of the merger of Japan Airlines and Japan Air System was that they cut domestic prices by 10% and keep it there for 3 years. In 2003 the government permitted the new merged airline to raise prices back to previous levels due to the Iraq war and SARs. Now they want to raise prices again due to higher oil prices.

Copyright 2005. All rights reserved Attorney Roderick H. Seeman

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