Act on Prohibition of Private Monopolization and Maintenance of Fair Trade（Act No. 54 of 1947）.

The purpose of this Act is to promote fair and free competition, stimulate the creative initiative of enterprise, encourage business activity, heighten the level of employment and actual national income, and thereby promote the democratic and wholesome development of the national economy as well as secure the interests of general consumers by prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, preventing excessive concentration of economic power and eliminating unreasonable restraints on production, sale, price, technology, etc. , and all other unjust restrictions on business activity through combinations, agreements, etc. ,.
An enterprise must not effect private monopolization or unreasonable restraint of trade (art.3). An enterprise must not enter into an international agreement or an international contract which contains such matters which fall under unreasonable restraint of trade or unfair trade practices(art.6). A trade association must not engage in any act which falls under any of the following items: (i) substantially restraining competition in any particular field of trade; (ii) entering into an international agreement or an international contract as provided in Article 6; (iii) limiting the present or future number of enterprise in any particular field of business; (iv) unjustly restricting the functions or activities of the constituent enterprise; (v) inducing an enterprise to employ such an act as falls under unfair trade practices. The Fair Trade Commission, which has the duty to achieve the purpose of this Act, shall be established.