Tokyo, Oct. 7 (Jiji Press)–Japan’s Fair Trade Commission raided four major Japanese brewers Wednesday for allegedly forming an illegal cartel to adjust shipment prices for beer and other products, sources familiar with the matter said. The four–Asahi Breweries Ltd., Kirin Brewery Co., Suntory Spirits Ltd. and Sapporo Breweries Ltd.–are suspected of violating the antimonopoly law. The raid was based on the FTC’s compulsory investigation authority backed by a warrant issued by a judge. The commission will continue its investigation, having in mind the possibility of filing a criminal complaint with public prosecutors. The Japanese beer and quasi-beer markets are almost monopolized by the four companies. According to the sources, the four firms are suspected of having adjusted shipment prices over several years. Specifically, marketing officials of the brewers may have gathered regularly and shared information on the timing and size of shipment price hikes for beer, “happoshu” quasi-beer and so-called third-segment beer-like beverages. They have met regularly as part of activities of an industry association. The annual domestic beer and happoshu markets are estimated to be worth around 1 trillion yen and 400 billion yen, respectively. The FTC carried out the raid, apparently believing that possible price adjustment by the four industry giants would have a significant impact on consumers. The FTC’s raid based on the compulsory investigation authority was the first since September last year, when the antimonopoly watchdog searched places related to oil sellers over their suspected gas oil price cartel. If the FTC officially recognizes the four brewers’ cartel, the amount of ensuing fines, calculated based on sales for the target period and other factors, may be hefty due to the large beer and quasi-beer market size. END [Copyright The Jiji Press, Ltd.]
