{"id":151188,"date":"2026-10-08T09:24:06","date_gmt":"2026-10-08T09:24:06","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=151188"},"modified":"2026-10-08T09:24:06","modified_gmt":"2026-10-08T09:24:06","slug":"japan-merger-control","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/japan-merger-control\/","title":{"rendered":"Japan: Merger Control"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-151188","comparative_guide","type-comparative_guide","status-publish","hentry","guides-merger-control","jurisdictions-japan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ikeda &amp; Someya<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/09\/logo-color.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ikeda &amp; Someya<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/09\/logo-color.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Merger Control laws and regulations applicable in Japan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Overview<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The fundamental legal system governing Japan&#8217;s merger control regime is Chapter 4 of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (the AMA). This provision comprehensively prohibits business combinations that would substantially restrain competition in a particular field of trade.<\/p>\n<p>In addition, business combinations between parties exceeding certain turnover thresholds require prior notification. In the case of share acquisitions, notification is also mandatory if the acquisition results in holding more than 20% of the voting rights. Furthermore, closing is prohibited for 30 days after the notification is filed.<\/p>\n<p>Furthermore, the Japan Fair Trade Commission (JFTC), as the enforcement authority, has published the &#8220;Guidelines to Application of the Antimonopoly Act Concerning Review of Business Combinations&#8221; (Merger Guidelines) to clarify concrete operations and analytical methods under the AMA, as well as the &#8220;Policies Concerning Procedures of Review of Business Combination&#8221; (Procedure Policies) outlining specific administrative procedures. Together, these form the practical criteria and operational guidelines in Japan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is notification compulsory or voluntary?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Prior notification is compulsory before executing a transaction if the transaction meets the statutory thresholds\u2014such as domestic turnover and voting right ratios\u2014for each merger type specified under the AMA.<\/p>\n<p>While there is no formal voluntary notification system under the law, if the acquisition consideration exceeds JPY 40 billion, the target company has a sufficient connection to Japan (e.g., domestic bases, sales activities targeting domestic users, domestic turnover exceeding JPY 1 hundred million), and there are concerns regarding the impact on domestic demanders, voluntary consultation prior to notification is recommended to avoid legal risks. Furthermore, regardless of whether a transaction meets the notification thresholds, the JFTC holds general review authority over statutory business combination types. To scrutinize potential competitive impacts, the JFTC may exercise its ex-officio authority to request documents and conduct a merger review.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a prohibition on completion or closing prior to clearance by the relevant authority? Are there possibilities for derogation or carve out?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For transactions subject to mandatory notification, parties are prohibited from closing\/executing the transaction until a 30-day waiting period has elapsed following the JFTC&#8217;s formal receipt of the notification. This constitutes a standstill obligation (suspending effect) prohibiting closing prior to clearance (gun-jumping). For business combinations that meet the notification requirements, a waiting period applies even in the case of a tender offer.<\/p>\n<p>In practice, if the parties submit a written application for shortening the waiting period and the JFTC deems it clear that the transaction will not substantially restrain competition in any particular field of trade, the waiting period may be shortened. In Japan, standard practice involves pre-notification consultations, where substantive reviews are often substantially completed prior to formal filing; thus, requests to shorten the waiting period are granted in many cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of transaction are notifiable or reviewable and what is the test for control?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the AMA, transaction types subject to merger review comprise: (1) share acquisitions\/holdings, (2) Interlocking Officers, (3) mergers, (4) joint share transfers, (5) corporate splits (joint incorporation-type split or absorption-type split), and (6) business transfers (acquisitions of business or business assets).<\/p>\n<p>Among these, transactions other than share holdings and interlocking directorates require mandatory prior notification if they meet the statutory thresholds. As a general rule, transactions conducted between intra-group companies belonging to the same group of combined companies (e.g., between a parent and a 100% owned subsidiary, or between sister companies under the same parent) are exempt from notification requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In which circumstances is an acquisition of a minority interest notifiable or reviewable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the case of share acquisitions, the notification thresholds are met when: (1) the total domestic turnover of the acquiring company&#8217;s corporate group exceeds JPY 20 billion, (2) the total domestic turnover of the target company (including its subsidiaries) exceeds JPY 5 billion, and (3) the resulting voting right ratio after the transaction exceeds 20% or 50%.<\/p>\n<p>For mergers, corporate splits, joint share transfers, and business transfers, specific domestic turnover combination thresholds are established. For instance, in a business transfer, notification is required if the acquiring group&#8217;s domestic turnover exceeds JPY 20 billion and the domestic turnover of the target business exceeds JPY 3 billion.<\/p>\n<p>Whether control is established or not is not a criterion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the jurisdictional thresholds (turnover, assets, market share and\/or local presence)? Are there different thresholds that apply to particular sectors?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For the overview, please refer to Question 5. A filing is required if both parties have domestic turnover above a certain threshold in Japan. Domestic turnover thresholds are calculated based on the total domestic turnover (consolidated domestic sales) in Japan of the &#8220;the group of combined companies&#8221; (the group comprising the Ultimate Parent Company and all of its subsidiaries etc.) of each party to the business combination. For example, the criteria are not limited solely to turnover generated from competing products; rather, total turnover is used as the standard.<\/p>\n<p>Internal transactions between companies within the same the group of combined companies are deducted to avoid double counting. There are no different thresholds that apply to particular sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are turnover, assets and\/or market shares valued or determined for the purposes of jurisdictional thresholds?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As set forth in Questions 5 and 6, a filing is required if both parties have domestic turnover above a certain threshold in Japan. Even if sales are generated by overseas entities or outside Japan, if the goods or services are ultimately supplied to demanders in Japan, they are included and calculated as domestic turnover in Japan.<\/p>\n<p>Turnover generated purely in markets for third country demanders outside Japan is not included in domestic turnover.<\/p>\n<p>Market share is not considered in determining whether a notification is required. However, even if a transaction does not meet the notification requirements, consultation with the JFTC is recommended if the total acquisition consideration exceeds JPY 40 billion and any of the following conditions apply: (a) the acquired company\u2019s business or R&amp;D bases are located in Japan; (b) the acquired company conducts business activities targeting domestic consumers, such as operating a Japanese website; or (c) the total domestic sales of the acquired company exceed JPY 100 million.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a particular exchange rate required to be used for to convert turnover thresholds and asset values?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When converting foreign currency sales (such as Euros or US Dollars) into Japanese Yen, the exchange rate used during the financial closing process for the relevant fiscal period (e.g., period-average rate) should be applied. If no exchange rate was used during the financial closing process, conversion into Yen is performed using the average exchange rate during the period calculated based on foreign exchange rates (TTS or TTM rates) published by MUFG Bank, etc.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In which circumstances are joint ventures notifiable or reviewable (both new joint ventures and acquisitions of joint control over an existing business)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the AMA, there are no independent notification categories or unique threshold criteria specifically tailored for &#8220;joint control&#8221; or &#8220;joint ventures (JVs)&#8221;. Depending on whether the JV is established via share acquisition, corporate split, or business transfer, general thresholds applicable to standard business combination types apply to determine notification requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any circumstances in which different stages of the same, overall transaction are separately notifiable or reviewable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Even when multiple business combinations are executed as part of a single comprehensive plan, whether a notification is required is determined individually for each act of business combination. For example, in a so-called triangular merger where Company A, a subsidiary of Company X, absorbs Company B by merger and delivers shares of Company X to Company B\u2019s shareholders, notifications are required for both (1) the absorption-type merger of Company B by Company A, and (2) the acquisition of Company X\u2019s shares by Company B\u2019s shareholders, provided that the applicable notification thresholds are met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do the thresholds apply to \u201cforeign-to-foreign\u201d mergers and transactions involving a target \/ joint venture with no nexus to the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Even in the case of a merger between foreign entities, a filing is required if both parties have domestic turnover above a certain threshold in Japan. On the other hand, if parties do not have such domestic turnover, the transaction is not subject to filing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">For voluntary filing regimes (only), are there any factors not related to competition that might influence the decision as to whether or not notify?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not applicable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the substantive test applied by the relevant authority to assess whether or not to clear the merger, or to clear it subject to remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For each of the three types of business combinations\u2014horizontal, vertical, and conglomerate\u2014an examination is conducted to determine whether the combination substantially restrains competition through unilateral conduct or coordinated conduct. Decisions are made on a case-by-case basis based on market shares and various evaluation factors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are factors unrelated to competition relevant?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While it is generally not taken into consideration, environmental performance and other related factors have recently come to be considered to the extent that they relate to competition.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are ancillary restraints covered by the authority\u2019s clearance decision?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The JFTC\u2019s clearance decision will not cover ancillary restraints, and no guidelines regarding self-assessment have been published.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">For mandatory filing regimes, is there a statutory deadline for notification of the transaction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no explicit statutory deadline for making a prior notification. However, the mandatory prohibition period of 30 days (subject to potential shortening) must expire before closing the transaction. Furthermore, in practice, extensive pre-notification consultations are conducted, which begin a reasonable time prior to the scheduled closing date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the earliest time or stage in the transaction at which a notification can be made?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A filing can be made provided that a notification form without any deficiencies in the required entries and attached documents is prepared. However, a filing may not be accepted in certain cases, such as when the scheduled execution date is more than one year after the submission date of the notification form, resulting in a significant time gap between the scheduled date and the submission date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it usual practice to engage in pre-notification discussions with the authority? If so, how long do these typically take?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pre-notification consultation is voluntary and not a legal requirement. However, to prevent procedural deficiencies in filing documents and to increase predictability regarding relevant market definitions and competitive assessments by the JFTC, pre-notification consultations are conducted in most cases.<\/p>\n<p>Even for transactions with low concerns regarding substantial restraint of competition, prior consultation is generally conducted for at least approximately one month. In complex cases where such concerns may arise, prior consultation may take over a year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the basic timetable for the authority\u2019s review?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The review process consists of two phases. Phase I takes 30 days from formal receipt of notification, within which the vast majority of transactions receive clearance.<\/p>\n<p>If a detailed review is deemed necessary, the case enters Phase II, and a final decision is issued within 90 days after all requested documents and reports are fully submitted (or 120 days from notification acceptance, whichever is later).<\/p>\n<p>Even for complex cases expecting detailed review, standard practice involves thorough discussion regarding market definition and competitive analysis during pre-notification consultation; filings are made once clearance prospect is established. Consequently, Phase II cases are rare.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Under what circumstances may the basic timetable be extended, reset or frozen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the review proceeds to Phase II, the review period will be extended. Phase II begins upon receipt of a request for reports or other information from the JFTC. The end date of the review period is determined by the timing of when the response to this request is completed. Furthermore, if it is decided to implement remedial measures, discussions the JFTC regarding their content may require additional time.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any circumstances in which the review timetable can be shortened?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Regarding the statutory 30-day waiting period, if the parties submit a written request for shortening and the JFTC determines that the transaction clearly will not substantially restrain competition, clearance is granted prior to 30 days and the waiting period is shortened.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which party is responsible for submitting the filing?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For share acquisitions and business transfers, only the acquiring company is subject to the filing obligation. For other types of business combinations, both parties are required to file.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What information is required in the filing form?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For both parties to a business combination, disclosure of a broad range of information is required, including an overview of the business combination plan, matters concerning the parties and their group of combined companies, and matters concerning the impact on competition. Information must be provided not only for the parties&#8217; corporate groups, but also for the filing company on a standalone basis, specifically, the notification form requires disclosure of various details, including the purpose of the transaction, domestic turnover of the parties&#8217; corporate groups, business overviews of both parties, and market shares.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which supporting documents, if any, must be filed with the authority?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Attachments such as power of attorney, the transaction contract, annual business reports, financial statements, securities reports, and other documents reflecting the financial status and profit\/loss of the group of combined companies are required. Furthermore, the JFTC may request internal documents explaining the background of the transaction (e.g., board presentation materials) and materials necessary for market definition and competitive analysis. Attached documents must be submitted for each entity subject to the filing requirement. The documents to be submitted are generally required to reflect the most up-to-date status.<\/p>\n<p>The notification form and certain attached documents must, in principle, be submitted in Japanese. Documents in foreign languages (e.g., English) may require Japanese translations. Certification of original may be required for articles of incorporation, contracts, and minutes of shareholders&#8217; meetings etc. On the other hand, notarization and apostille are not required.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a filing fee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Japanese merger control system, no filing fees are required.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a public announcement that a notification has been filed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The fact that a notification has been accepted is generally not published by the JFTC, and Phase I review proceeds confidentially.<\/p>\n<p>However, the JFTC publishes cleared cases on a quarterly basis. Transactions that proceed to Phase II review are publicly announced upon entering Phase II. In addition, for cases that underwent Phase II review or were cleared subject to remedies (commitments), detailed review results may be published on the JFTC website after the review concludes. Note that the parties are usually given an opportunity to review the details of the case to be disclosed in advance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the authority seek or invite the views of third parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As part of its competitive assessment, the JFTC sends questionnaires or conducts interviews with third parties\u2014such as competitors, customers, and suppliers\u2014on a voluntary cooperation basis as necessary.<\/p>\n<p>In Phase II cases, the JFTC publicly solicits comments and information from general third parties on its website for a 30-day period to evaluate whether to grant clearance.<\/p>\n<p>For cases where it is clear that there are no competition concerns, third-party hearings are usually not conducted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What information may be published by the authority or made available to third parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Please refer to Question 26. In principle, the content of the notification form, attached documents, materials submitted by the parties, and other information provided by the parties and third parties are not disclosed externally. However, the JFTC may publish the details of its review results, in which certain information may be disclosed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the authority cooperate with antitrust authorities in other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The JFTC has entered into antimonopoly cooperation agreements with the United States, the EU, and Canada, and has also concluded Economic Partnership Agreements containing competition-related provisions with multiple countries, including Singapore. Although refusing to submit a waiver (waiver of confidentiality) for the exchange of information with other competition authorities has no legal consequences, there is a risk that it may result in a prolonged review.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What kind of remedies are acceptable to the authority?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Remedies are, in principle, structural remedies such as divestitures that restore market structure.<\/p>\n<p>However, in recent practice, the JFTC widely accepts behavioral remedies\u2014such as information firewalls\/commitments or supporting competitors&#8217; operations (sharing distribution\/after-sales networks)\u2014provided they effectively eliminate competitive concerns.<\/p>\n<p>The JFTC requires structural remedies (including divestitures) to be implemented prior to closing in principle, but permits post-closing execution when unavoidable. In this regard, the proposed revisions to the Merger Guideline stipulate that: (1) the deadline for implementing remedies must be appropriately and clearly defined; and (2) interim measures must be taken to ensure that no adverse effects on competition arise\u2014such as measures to guarantee that each party will continue to operate independently until the remedies are implemented, and measures to monitor the situation to prevent undue harm to consumers; (3) For example, in cases where a business transfer is carried out as a remedy, it will be permissible to implement such measures \u201cafter execution\u201d provided that steps are taken to ensure no actions are taken that would impair the value of the business subject to the transfer. Furthermore, with regard to remedies involving a specific counterparty, such as a business transfer, it is desirable for the group of participating companies to obtain the JFTC\u2019s approval regarding that counterparty during the merger review process; if the counterparty is selected after the merger review has concluded, the JFTC\u2019s prior approval will be required.<\/p>\n<p>In order to monitor the implementation of remedies from a neutral standpoint, the JFTC has, in some cases, required the parties involved to appoint an independent external expert as a \u201cMonitoring Trustee\u201d and imposed the condition that the Monitoring Trustee submit regular reports (e.g., once a year) to the JFTC regarding the status of implementation. In this regard, the proposed revisions to the Merger Guidelines establish as a general rule that the implementation of remedial measures by the party company group must be monitored by a third party independent of the party company group and the counterparties to the remedial measures, in order to ensure the reliable implementation of such measures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What procedure applies in the event that remedies are required in order to secure clearance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Remedial measures are construed strictly as voluntary proposals submitted by the parties. They may be initiated either when the JFTC suggests potential competition concerns between the pre-filing consultation and the completion of the Phase II review, or proactively by the parties without waiting for a suggestion from the JFTC. In that sense, there is no deadline for presenting remedial measures. The remedial measures proposed by the parties will be evaluated by the JFTC regarding the appropriateness of their content to determine whether they will establish a state where the transaction will not substantially restrain competition.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the penalties for failure to notify, late notification and breaches of a prohibition on closing?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Failure to file prior notification or submitting false statements in a notification may subject corporations to criminal fines of up to JPY 2 million. Executing a transaction during the waiting period is similarly subject to a fine of up to 2 million yen. The entity subject to such penalty is the party under the filing requirement (refer to Question 22). Please note that even if a violation occurs, it will not immediately lead to criminal prosecution; instead, sincere consultations with the JFTC may result in a severe warning.<\/p>\n<p>Furthermore, for transactions such as mergers, corporate splits, or joint share transfers executed without filing or during the mandatory 30-day waiting period, the JFTC may file a lawsuit to invalidate the transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the penalties for incomplete or misleading information in the notification or in response to the authority\u2019s questions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As described in Question 32, submitting false statements in a notification form may subject the filing party to fines. Furthermore, if a notification form contains false statements on material matters, a cease and desist order may be issued even after clearance has been granted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the authority\u2019s decision be appealed to a court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the JFTC issues a cease-and-desist order against a business combination, aggrieved parties may file a lawsuit seeking revocation of the order. The statute of limitations for filing a lawsuit is, in principle, six months from the date on which the party becomes aware of the disposition.<\/p>\n<p>However, it is generally difficult for third parties (such as competitors) to challenge JFTC decisions not to issue ease-and-desist order etc. through judicial appeals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the recent trends in the approach of the relevant authority to enforcement, procedure and substantive assessment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>(i) In addition to reviewing business combinations based on filings, the JFTC actively accepts consultations equivalent to formal filings from the parties involved regarding business combinations that do not meet the filing threshold. Furthermore, in cases where a business combination may meet the filing threshold, the JFTC may contact the parties to inquire about the necessity of filing and whether there are any competition concerns.<\/p>\n<p>(ii) In recent years, it appears that a trustee has generally been appointed as part of the remedies implemented. The draft revision of the Merger Guidelines also states that, as a general rule, a third party independent of the parties\u2019 corporate groups and the counterparties etc. to the remedies should be appointed as the trustee.<\/p>\n<p>(iii) In Japan\u2019s merger review process, even for complex cases that would normally require a certain review period, the review is almost always concluded at the first-stage review by thoroughly utilizing pre-notification consultations. In particular, in recent years, no second-stage review had been conducted for a full four years since the announcement of the review results on November 26, 2021, regarding the proposed acquisition of shares of Siltronic AG by Global Wafers GmbH. Although a second-stage review was conducted in 2026, it remains unclear whether second-stage reviews will continue to be utilized in the future.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any future developments or planned reforms of the merger control regime in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The JFTC is planning to revise its Merger Guidelines. Public comment procedures were completed on August 31, 2026.<\/p>\n<p>Notable additions in the draft revision include explicit considerations of supply stability improvements, environmental performance (GHG reduction), creation of new products via investment\/innovation, and long-term market dynamics regarding import pressure and efficiency. In addition, updates have been made based on recent cases and the principles outlined in draft guidelines from other countries.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3798<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/151188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=151188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}