Abhandlungen
The Subtle Interplay between the FTC and the Civil Courts.
Three Famous Termination Disputes
within the Distribution System for Luxury Cosmetics
Willem Visser ‘t Hooft
I. Introduction
1. Japanese Anti-Trust Law and Contract Terminations with Discounters
2. Termination Disputes within the Distribution System for Luxury
Cosmetics
II. Three Famous Termination Disputes
1. Introduction
2. Background to these Disputes
3. Applicable Articles of the Anti-monopoly Act and the FTC Guidelines
4. Victories for Discounters before the Tokyo District Court (1993, 1994)
5. The First Tokyo High Court Decision (Shiseido v. Fujiki, 1994)
6. The FTC Recommendation against Shiseido (1995)
7. The Second Tokyo High Court Decision (Kao v. Egawa Kikaku, 1997)
8. The Supreme Court Decision (Kao v. Egawa Kikaku/Shiseido v. Fujiki,
1998)
9. Conclusion
III. The Complex Relationship between the FTC and the Civil Courts
1. The Influence of the FTC on the Civil Courts
2. The Influence of the Civil Courts on the FTC
3. Future Prospects
Recently, there have been significant pressures both to lower prices and
to restructure distribution channels in Japan. This has put a greater strain
on many continuing commercial contracts, which have been described so extensively
in Japanese literature.[1] Economic pressures have not only caused
the further restructuring of distribution systems and subsequent terminations
of contracts by manufacturers, but have also resulted in a greater volume
of termination disputes before the civil courts.
The most important factor is the current recession. It has left Japanese
consumers with less purchasing power than before. Therefore, pressures to
sell at lower prices have increased, even leading to deflationary pressures
throughout the economy. This, in turn, triggered the sudden growth of discounters
in the 1990s which had many repercussions in the distribution sector.