Furthermore, to streamline the production or distribution of goods or the supply of services, administrative organs may impose specific restrictions or exercise guidance to urge firms or their trade association to work toward standardization. Although this administrative guidance, in principle, poses no problems under the Antimonopoly Act, if standards or the like are decided upon under a particular instance of administrative guidance by firms acting together, or their trade association, or unreasonably harm consumer interests, or force constituent firms or the like to observe these standards, the decision by the firms or their trade association to have such standards or the like would pose a problem under the Antimonopoly Act. Therefore, administrative organs should keep this point fully in mind.

Furthermore, when an administrative organ exercises guidance in connection with business techniques, quality, standards, advertising, representations and the like, if the firms acting together, or their trade association, make a decision under said administrative guidance, even if it concerns the conditions of transactions, including prices, this decision would pose a problem under the Antimonopoly Act even if its observance is not compulsory. Administrative organs should therefore keep this point firmly in mind as well.

### 3. Interpretations Concerning Administrative Guidance Involving Permits, Approvals, etc

In some fields of business, entry and/or withdrawal, prices, volume, equipment and the like are regulated through permits, approvals, etc. Such regulation through permits, approvals, etc. should be exercised only on the basis of requirements prescribed by law or regulation, and administrative organs should take special care that the business activities of firms and fair and free competition not be restricted or inhibited by such granting of permits, approvals, etc. as may transcend the requirements prescribed by law or regulation. There are cases in which provisions in a law or regulation make reporting mandatory regarding entry and/or withdrawal, prices, volume, equipment or facilities, and the like. However, the same provisions apply to the restriction of business activities of firms regarding said matters by treating the reports in virtually the same manner as applications for permits, approvals, etc.

Even when an administrative organ exercises administrative guidance in the granting of permits, approvals, etc. as prescribed by law or regulation, administrative guidance, depending on its content or method, may invite conduct by firms or their trade association which violates the Antimonopoly Act, and administrative organs should take full note of the possibility that administrative guidance, especially that which is supported by permits, approvals, etc., is apt to have a virtually compulsory effect. Any instance of individual guidance by an administrative organ regarding change in the contents of a firm's application for permit, approval, etc. in the light of legally prescribed requirements in itself poses no problem under the Antimonopoly Act. However, if this organ exercises guidance so as to have any firm or trade association intervene regarding