About the Japan Fair Trade Commission's Announcement Regarding Certain Car Carrier Shipping Trades
March 18, 2014
The Japan Fair Trade Commission (the "JFTC") today announced that it 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). But 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.
It is MOL's principle to do its business in full compliance with the laws and MOL has been in compliance with corporate ethics and social norms. We are taking the JFTC's announcement very seriously. We are making our best efforts to prevent any recurrence of such issues, to further enhance MOL's compliance structure, and to regain public confidence.