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ARTICLE · 11 FEBRUARY 2021

Beware Of Business Collaborations With Startups In Japan: New Guidelines Released

Winston Taylor
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As part of an ongoing effort by the Japanese government to promote economic growth through open innovation, late last year, the Japan Fair Trade Commission (JFTC) and Ministry of Economy...

JapanAntitrust/Competition Law
Eva W. Cole
Eva W. Cole
Tomonori Maezawa
Tomonori Maezawa
Kei Teshirogi
Kei Teshirogi

As part of an ongoing effort by the Japanese government to promote economic growth through open innovation, late last year, the Japan Fair Trade Commission (JFTC) and Ministry of Economy, Trade and Industry (METI) jointly released draft Guidelines on Business Collaborations with Startups (the Guidelines).1 The Guidelines seek to facilitate successful innovation through business collaborations while preventing unfair situations that can arise from the unequal bargaining power between large corporations and startups. This post outlines both the examples and the relevant competition law issues that the Guidelines detail, and discusses key legal risks surrounding transactions with startups in Japan.

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