Car Carrier Shipping Trades
The Japan Fair Trade Commission (the “JFTC”) today announced that it has issued Cease and Desist Orders and Surcharge Payment Orders to certain shipping companies regarding certain car carrier shipping trades.
The JFTC suspected certain shipping companies, including Mitsui O.S.K. Lines, Ltd. (“MOL”), of violating the Japanese Antimonopoly Act, and conducted on-site investigations on September 6, 2012. According to the JFTC’s announcement, MOL was among the companies found to have violated Article 3 of the Antimonopoly Act (Unreasonable Restraint of Trade).
MOL was exempted from all of the administrative orders described above because MOL had already ceased the questioned conduct before the on-site investigation and the JFTC granted MOL’s application under the JFTC’s leniency program.
MOL offers its sincere apologies to its valued customers and to society for the concerns. In view of the seriousness of this matter, the compensation of the Chairman, the President, and the Senior Managing Executive Officer responsible for the car carrier business will be cut by 50% for one year starting in April 2014.
K-Line also expressed it’s sincere regret for the concern this matter has caused to customers, shareholders and concerned parties.
“K” Line was ordered, among other things, to confirm that it has discontinued acts that are in violation of Article3(Unreasonable Restraint of Trade) of the Antimonopoly Act of Japan, to comply with guidelines concerning theobservation of the Antimonopoly Act of Japan and to implement periodic training for its employees and periodic audits.
In light of the seriousness of this matter, the CEO, and the Directors and the Executive Officers who are in charge of the concerned sector, have decided to return voluntarily 10-30% of their monthly remuneration for three months.
