Tokyo, January 9, 2026 —The Japan Fair Trade Commission (JFTC) will continue to prioritize strict cartel enforcement, stronger oversight of digital markets, and fair trading conditions for small and medium-sized businesses, according to a New Year message from Chair Chatani Eiji outlining the authority’s policy agenda for 2026.
Chatani said fair and free competition remains essential as Japan seeks to shift from a long-standing deflationary economy toward growth, while addressing challenges such as wage increases that outpace inflation.
Cartels, Bid Rigging, and Unfair Practices
The JFTC said it will maintain strict enforcement of the Antimonopoly Act against price cartels and bid rigging, particularly in sectors that directly affect consumers’ daily lives. In the current fiscal year through December, the authority issued nine cease-and-desist orders in cartel and bid-rigging cases, including enforcement action involving a gasoline cartel in Nagano Prefecture.
The authority also highlighted its enforcement against abuse of superior bargaining position and other unfair trade practices, with a focus on protecting SMEs. Under the Fair Transactions Act, the JFTC issued 21 recommendations in FY 2024, the highest number in a decade, and had already exceeded that figure in the current fiscal year with 26 cases as of December.
In addition, the JFTC has begun enforcing the Act on Improvement of Transactions Between Freelancers and Business Operators, which entered into force in November 2024, issuing six recommendations related to unclear contract terms and late payments.
Digital Enforcement and New Regulatory Frameworks
In the digital sector, the JFTC pointed to recent enforcement actions, including a cease-and-desist order issued against Google in April 2025 concerning contractual restrictions affecting competing search services on Android devices.
The authority also highlighted the full entry into force of the Mobile Software Competition Act in December 2025, which introduces a new regulatory framework aimed at expanding user choice on mobile devices. The JFTC said it will engage in continuous dialogue with designated providers and developers to ensure effective implementation.
The JFTC also plans to continue monitoring competition risks linked to generative AI, building on its June 2025 “Generative AI Report, Version 1.0,” with further updates expected as markets evolve.
Price Pass-Through and Supply Chain Fairness
Chair Chatani emphasized the importance of smooth price pass-through across supply chains to support sustainable wage growth. Amendments to the Subcontract Act, which took effect on January 1, 2026, strengthen rules against unilateral price setting, ban payment by promissory notes, and expand coverage to additional transaction types, including transportation services.
The amended law, now renamed the Fair Transactions Act, will be enforced alongside updated guidelines on labor cost pass-through, with the JFTC working closely with other government agencies.
International Cooperation and Capacity Expansion
The JFTC said it will continue strengthening international cooperation, particularly in digital markets, following its hosting of the first Global Forum on Digital Competition in 2025. A second forum is planned for 2026.
Chatani also noted that the authority’s staffing will reach around 1,000 personnel in 2026 following a budget increase, reflecting the expanding scope of its enforcement and policy responsibilities.
Source: https://www.jftc.go.jp/en/policy_enforcement/speeches/2026_files/message_chair_2026.html
