Japan: Competition Authority issued ruling on investigation into SMK Corporation over alleged violations of Subcontracting Act pertaining to telecommunications and electronic equipment

On 15 July 2025, the Japan Fair Trade Commission (JFTC) issued a recommendation to SMK Corporation for violating Article 4(2)(iii) of the Subcontract Act by requiring 65 subcontractors to store 823 moulds without compensation, thereby unjustly harming their interests. The measure applies to SMK’s subcontracting of parts used in telecommunications and electronic equipment. SMK must reimburse storage costs (subject to JFTC confirmation), acknowledge the breach by board resolution, establish a compliance framework with training on mould management, inform officers and subcontractors of the corrective measures, and report implementation to the JFTC.