The Japan Fair Trade Commission plans a major organizational overhaul to strengthen tech giant regulation. This restructuring could take effect as early as summer next year, according to sources familiar with discussions. Consequently, this would mark the commission’s first significant structural change since 1996.
Indeed, the commission intends to split its Economic Affairs Bureau into two specialized bureaus entirely. This bureau currently handles competition policy planning alongside merger and acquisition screening duties. Meanwhile, the Investigation Bureau, which probes antimonopoly violations like cartels, would remain unchanged. Therefore, this organizational overhaul would expand the commission from two bureaus to three total.
Furthermore, one new bureau would focus primarily on small and midsize enterprise protection specifically. This includes implementing the Law on Proper Transactions with Small and Medium-Sized Entrusted Business Operators. Additionally, the other bureau would concentrate on digital sector oversight and merger screening responsibilities. Since the commission plans to submit an amendment bill to next year’s Diet session, final bureau names remain undetermined currently.
Moreover, the commission is also considering upgrading local offices into larger regional secretariats nationwide. This move aims to strengthen nationwide monitoring while helping smaller businesses pass along rising costs. Given increasing digitalization and evolving economic conditions, the commission’s regulatory workload has grown substantially. Recent additions include laws governing entrusted business transactions and mobile software competition specifically targeting major IT firms.
Notably, commission staffing has nearly doubled from roughly 530 employees in 1996 to about 1,000 today. This growth reflects expanding responsibilities as digital markets and business practices continue evolving rapidly. Junji Suzuki, chairperson of the ruling party’s market competitiveness research commission, proposed strengthening bureau structures in May.
Ultimately, this organizational overhaul reflects Japan’s broader effort to modernize antitrust enforcement amid digital transformation. Going forward, lawmakers will review the amendment bill during next year’s ordinary Diet session.
