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Putting Limits on Extra-Territorial Coverage of Competition Laws in the Age of Global Supply Chains: Comparison of the US and Japan

In: Emerging Issues in Sustainable Development

Author

Listed:
  • Toshiaki Takigawa

    (Kansai University)

Abstract

This comment, through comparing two representative extra-territorial antitrust cases in the US and Japan, shows that, in the age of global supply-chains, competition agencies’ enforcement on conduct overseas (based on the effect doctrine) needs to receive proper limitation. Each competition agency needs to limit its law enforcement to cases conducted overseas, which have direct (and substantial effect) on consumers of the agency’s home country. Regarding this “direct” effect, price-fixing of components conducted in foreign countries would normally be interpreted as lacking in direct effect on home countries to which finished products are exported. Moreover, competition agencies of MNEs’ home countries would normally be advised to refrain from extending protection under the competition law to the MNEs’ foreign subsidiaries since the subsidiaries are entitled to seek protection under the competition laws of respective foreign countries where they are incorporated.

Suggested Citation

  • Toshiaki Takigawa, 2016. "Putting Limits on Extra-Territorial Coverage of Competition Laws in the Age of Global Supply Chains: Comparison of the US and Japan," Economics, Law, and Institutions in Asia Pacific, in: Mitsuo Matsushita & Thomas J. Schoenbaum (ed.), Emerging Issues in Sustainable Development, chapter 0, pages 245-255, Springer.
    • Handle: RePEc:spr:eclchp:978-4-431-56426-3_11
    DOI: 10.1007/978-4-431-56426-3_11
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