Labour in Competition Law in Japan

Abstract

The AMA does not apply to workers’ collective actions protected by labour law. Due to the uncertainty in the definition of workers and coverage of labour law, the extent to which self-employed workers’ collective actions are exempt from the AMA has become unclear. In such a context, it is imperative to recognise that small economic entities’ collective bargaining and other activities that trade unions are engaged in are not always anticompetitive and that an AMA violation is not found unless substantial restriction of competition, or lessening of competition, is caused by the practices. Moreover, the actions of co-operatives are also exempt from the AMA and those who are not protected as workers can strengthen their bargaining position by forming co-operatives. The AMA is primarily enforced by the JFTC and its interest has been rather to protect small businesses from those with superior bargaining positions. For the time being, it is unlikely that the JFTC will start prosecuting the collective actions of self-employed workers which may be protected by the labour law. The paper details the relationship between labour and competition law in Japan focusing worker's collective actions.