Draft Guidelines Released on Amendment to the Antimonopoly Act (Japan): Reduction System for Cooperation and Attorney-Client Privilege

The “Act for Amendment of the Antimonopoly Act (“Amendment”) was enacted on June 19, 2019, promulgated on June 26, and, with the exception of some provisions already in force, will come into effect within one year and six months from the date of its promulgation.

Under the former leniency program, immunity / administrative fine (surcharge) reductions were granted to companies that applied for leniency and met certain requirements. The program was often criticized both for giving companies an insufficient incentive to cooperate with Japan Fair Trade Commission (“JFTC”) investigations and for being inadequate to discourage them from interfering with such investigations. To address these concerns, the Amendment introduced a “Reduction System for Cooperation in Investigations”. Under this new system, a company can be eligible for a surcharge reduction based on the extent of its contribution to an investigation.