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Subcontract Act emerges as regulatory risk for foreign companies in Japan

By Sachiko Sakamaki ( June 23, 2025, 02:49 GMT | Comment) -- Many foreign companies doing business in Japan have likely not paid much attention to a supplementary law to the Antimonopoly Act — known as the Subcontract Act — that is designed to prevent exploitative abuses of small- and medium-size enterprises, or SMEs. However, that may need to change, after the Japanese parliament recently enacted an amendment that broadens the category of regulated companies.Many foreign companies doing business in Japan have likely not paid much attention to a supplementary law to the Antimonopoly Act — known as the Subcontract Act — that is designed to prevent exploitative abuses of small- and medium-size enterprises, or SMEs. However, that may need to change, after the Japanese parliament recently enacted an amendment that broadens the category of regulated companies....

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