Japan to Slap Record Antitrust Fine on Utilities, Nikkei Reports

Nov 25, 2022 by Bloomberg
image is BloomburgMedia_RLWDP2DWX2PS01_25-11-2022_11-00-16_638049312000000000.jpg

Power transmission lines are suspended from electricity pylons in Saitama, Japan. Utilities powering Japan, the world’s third-biggest economy, have been forced to turn to coal, oil and gas-fired plants to keep factories, offices and households supplied with electricity.

Japan’s Fair Trade Commission will issue a record-high fine on three utilities due to antitrust violations, the Nikkei reported on Friday.

Kyushu Electric Power Co., Chugoku Electric Power Co. and Chubu Electric Power Co. limited acquisition of power customers within another company’s region from 2018, which is against the nation’s competition laws, the Nikkei reported. Japan’s power market was fully liberalized in 2016, allowing for regional utilities to further expand into rival areas.

The fine will be in the tens of billions of yen, the paper said, which would be at least $71 million.

A spokesperson for Chubu Electric said the company is not aware of the accuracy of the Nikkei report. A spokesperson for Chugoku Electric said the company couldn’t comment. Kyushu Electric and the JFTC weren’t immediately available to comment.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

By Shoko Oda , Stephen Stapczynski

Back To Top