The Japanese FTC finds the prevention by a franchisor of discount sales of fresh foods and beverages by franchisees to be an abuse of a superior bargaining position (Seven-Eleven Japan)

I. Introduction On 22 June 2009, the Japan Fair Trade Commission (“JFTC”) found that Seven-Eleven Japan Co., Ltd. (“SEJ”) abused its superior bargaining position in violation of Article 19 of the Antimonopoly Act (“AMA”) by forcing some of its franchisees to stop discount sales of fresh foods and beverages, and issued a cease and desist order against SEJ (“Order”). II. Superior Bargaining Position Based on the facts set forth below, the JFTC found that franchisees were obliged to accept demands from SEJ because the termination of the franchising relationship with SEJ would negatively affect their business to a considerable degree. • SEJ is the biggest franchisor of convenience stores in Japan both in terms of the number of stores and sales

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Authors

  • Anderson Mori & Tomotsune (Tokyo)
  • Anderson Mori & Tomotsune (Tokyo)

Quotation

Shigeyoshi Ezaki, Naoko Takasaki, The Japanese FTC finds the prevention by a franchisor of discount sales of fresh foods and beverages by franchisees to be an abuse of a superior bargaining position (Seven-Eleven Japan), 22 June 2009, e-Competitions Franchising, Art. N° 73500

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