Cooperatives may be established pursuant to the provisions of various statutes for the purpose of providing mutual aid among small-scale firms. If the requirements of Sec. 22 of the Antimonopoly Act are met, joint economic undertakings will generally be exempted from the application of the Antimonopoly Act. This is for the purpose of allowing small-scale firms that are incapable of competing individually with large-scale firms by themselves to form a mutual-aid business union that is economically effective unit of competition. However, cases should not be exempted from the application of the Antimonopoly Act if they are unfair trade practices, or if they substantially restrain competition in a particular field of trade and thereby effect unjust price increases (Proviso to Sec. 22). Similarly, no exemption shall be granted to cooperative federations or other organizations that collude with other organizations or firms to fix prices or to restrict the amounts of goods or services. In addition, other laws provide for other exemption systems.

(Translation Notes)

Sec. 24 of the Antimonopoly Act referred to trade associations was moved to Sec. 22 by 2000 amendment. Depression and rationalization cartel systems and the Antimonopoly Act Exemptions Act were abolished in 1999.

## Part II: The Antimonopoly Act and the Actual Activities of Trade Associations

(1) Trade associations engage in many activities, such as educating, training, collecting and offering information, submitting requests to the government, and making public announcements of opinions. These activities are conducted for a variety of reasons, such as responding to societal or public needs, or promoting consumer understanding in their respective industries. Within the broad spectrum of trade association activities, those activities that might restrain or impede competition among firms pose problems with respect to the Antimonopoly Act.

If a trade association's activity might result in some kind of restraint on the business operations of a firm, it is necessary to consider whether or not that activity poses a problem under the Antimonopoly Act.

(2) Restricting measures posed by a trade association on the price or quantity of goods or services that are either supplied or received, the customers and sales channels for trade, the facility for supply or other important competition means among all facets of business activities of a firm exerts a direct influence on the market mechanism. If a trade association's activity restricts the entry into a market, or expels existing firms from a market, the trade association's activity also exerts a direct influence on the market mechanism.

To substantially restrain competition in a market (Note) by engaging in the conduct listed in Item 1 (Conduct that Restricts Prices) through 5 (Conduct that Restricts the Entry of Firms, etc.) below constitutes a violation of Sec. 8 (i) of the Antimonopoly Act. Even if such conduct does not go so far as to substantially restrain competition in a market, in principle it nonetheless constitutes a violation of Sec. 8 (iii), (iv), or (v).

Restrictive conduct of the kind described above is considered in principle to constitute a violation of the Act, regardless of the specific form, means, or method involved in such conduct. Moreover, such conduct is considered to constitute a