Consent Decision No. 2 of 1998 Consent Decision Respondent: Hokkaido Shinbun Press Corporation 3 – 6 Odori-Nishi, Chuo-ku, Sapporo-shi Representative of respondent: Mr. Isao Higashi, President Attorneys for respondent: Masaki Baba, Esq. Satoshi Taguchi, Esq. Shiro Shida, Esq. Where the Fair Trade Commission of Japan (JFTC) proceeded with the hearing procedures regarding the violation of the Act Concerning Prohibition of Private Monopolization and Maintenance of Fair Trade (hereinafter referred to as “Antimonopoly Act”) against the aforementioned parties, on February 7, 2000 the said parties requested in writing that it desired to receive a consent decision under the provisions of Section 53-3 of the Antimonopoly Act and Section 59 of the Rules Concerning Investigations and Hearings by the Fair Trade Commission. In addition thereto, the written plan for the detailed measures and the report on the measures for a series of activities called the measures for Hakodate described in Part I. II. 2 of the attached Decision to Commence Hearing were submitted. Upon careful examination of them, it was confirmed that the measures described in the said written plan were appropriate. Therefore, under Section 53-3 of the Antimonopoly Act, it is hereby ordered as follows without any further hearing procedures. Main Text I. The subject company shall notify K.K. Hakodate Shimbun Co., Ltd., of the following matters and publicize them to the consuming public in the areas of Hakodate-shi, - 1 - Ono-cho, Nanae-cho, and Toi-cho of Kameda-gun, and Kamiiso-cho of Kamiiso-gun, Hokkaido, as best it can. Ways of such notice and publicizing shall be approved by the Fair Trade Commission of Japan in advance. 1. That the heading subject company took the following measures against a series of activities called the measures for Hakodate taken by itself in order to prevent an entry of Hakoshin-sha and make its business activities difficult: (1) It withdrew all of the applications for registration of trademark in relation to the Hakodate Area; (2) It notified Jiji Press, Ltd., that it would not get involved in delivery of general news including domestic and foreign sports news to K.K. Hakodate Shimbun Co., Ltd.; (3) It decided to discontinue the previous advertisement rate for the local information edition and advertisement handling fees for the same and set appropriate advertisement rate and advertisement handling fees, and consequently revised the advertisement rate, etc.; and (4) It notified Television Hokkaido Broadcasting Co., Ltd., that it would not get involved in broadcasting of the TV Commercial of K.K. Hakodate Shimbun Co., Ltd. 2. That hereafter, it would not exclude the business activities of K.K. Hakodate Shimbun Co., Ltd. regarding publication of general daily newspaper through the same kind of activities as a series of activities called the measures for Hakodate as stated above. II. The hearing subject company shall not exclude the business activities of K.K. Hakodate Shimbun Co., Ltd. regarding publication of general daily newspaper through the same kind of activities as a series of activities called the measures for Hakodate as stated above. III. The hearing subject company shall report to the Fair Trade Commission about measures taken based on I. and II. above. Findings of Fact and Application of the Law Other than the following additions and revisions, there is no change in the descriptions of “Part I Findings of Fact” and “Part II Application of the Law” in the attached Decision to - 2 - Open Hearing Procedures. Therefore, such descriptions are hereby cited and incorporated herewith. I. Following the word “Doshin-sha” on the line 6 of page 9 <editor’s note: the line 9 of page 151 of the Decision Reports> of the said Decision, the phrase “, on February 13, 1997, withdrew the applications for registration of trademark for five newspaper titles from the applications for nine newspaper titles, however, for the remaining four newspaper titles” shall be added, and the “… is appealing for …” on the line 9 of the same <editor’s note: line 10 of page 151 of the Decision Reports> shall be changed to the phrase “… appealed for …”. II. The words “is obtaining” on the line 1 of page 12 of the Decision <editor’s note: the line 8 of page 152 of the Decision Reports> shall be changed to the word “obtained”, and the phrase “since the first publication … up to the present” on the lines 3 and 4 of the same <editor’s note: the lines 9 and 10 of page 152 of the Decision Reports> shall be changed to the phrase “after the first publication”, and the phrase “is in the situation” on the line 5 of the same <editor’s note: the lines 10 and 11 of page 152 of the Decision Reports> shall be changed to the phrase “was in the situation”. III. The phrase “which has been implemented” on the line 6 of page 13 of the Decision <editor’s note: the line 19 of page 152 of the Decision Reports> shall be changed to the phrase “which had been implemented”, the phrase “since the first publication …up to the present” on the lines 7 and 8 of the same <editor’s note: the line 20 of page 152 of the Decision Reports> shall be changed to the phrase “after the first publication”, and the phrase “has been forced to …” on the line 9 of the same <editor’s note: the line 1 of page 153 of the Decision Reports> shall be changed to the phrase “had been forced to …”. IV. Following the line 12 of page 14 of the Decision <editor’s note: the line 10 of page 153 of the Decision Reports>, the following sentences are added: “III. After that, with regard to a series of activities called the measures for Hakodate as stated in II. 2 above, Doshin-sha took the following measures and stopped such series of activities: 1. On October 1, 1999, it withdrew all applications for registration of trademark for four newspaper titles which it appealed to the patent office. 2. On February 2, 2000, it notified Jiji Press that it would not get involved in the delivery of wire reports of general news including domestic and foreign sports news to Hakoshin-sha. 3. It decided to discontinue the previous advertisement rate for the local - 3 - information edition and advertisement handling fees for the same and revised them on January 1, 2000. With regard to the aforementioned revision of the advertisement rate for the local information edition, it notified applicable advertisement agencies on December 27, 1999. In addition thereto, it again notified on January 26 and 27, 2000. And with regard to the aforementioned revision of the advertisement handling fees, it notified applicable advertisement agencies on December 20, 1999. 4. On February 1, 2000, it notified TV Hokkaido that it would not get involved in broadcasting of the TV Commercial of K.K. Hakodate Shimbun Co., Ltd.” V. The phrase “practically confines” on the line 5 of page 15 of the Decision <editor’s note: the line 14 of page 153 of the Decision Reports> shall be changed to the phrase “practically confined”. February 28, 2000 Yasuchika Negoro, Chairman Shohei Shibata, Commissioner Shogo Itoda, Commissioner Hisami Kurokochi, Commissioner Tadayoshi Honma, Commissioner The Fair Trade Commission of Japan - 4 - (Attached) Decision No.3 of 1998 Decision to Open Hearing Procedures Respondent: The Hokkaido Shimbun Press 6-3 Odori-Nishi, Chuo-ku, Sapporo-shi Representative of respondent: Mr. Akira Sakanogami, President The Fair Trade Commission of Japan (JFTC) hereby commences the hearing proceedings regarding the accused case for violation of the Act Concerning Prohibition of Private Monopolization and Maintenance of Fair Trade (hereinafter referred to as “Antimonopoly Act”) against the aforementioned party. Part I Findings of Fact I. 1. The Hokkaido Shimbun Press, is a company headquartered at the above address and engaging in the publication business of general daily newspaper with its sales area being Hokkaido (hereinafter referred to as “Doshin-sha”). 2. The number of issues of the morning edition of “Hokkaido Shimbun”, general daily newspaper issued by Doshin-sha (hereinafter referred to as “Hokkaido Shimbun”) in the Hokkaido area accounts for a majority of the total number of issues of the morning edition of general daily newspapers issued in the same area as of October 1997. Among such area, the number of issues thereof in Hakodate-shi, Ono-cho of Kameda-gun, Nanae-cho of Kameda-gun and Kamiiso-cho of Kamiiso-gun, Hokkaido (after August 1997, Toi-cho of Kameda-gun was added. Hereinafter referred to as “Hakodate Area”) accounts for a large percentage of the total number of issues of the morning edition of general daily newspapers issued in the Hakodate Area. Further, the number of issues of the evening edition of Hokkaido Shimbun in the Hakodate Area accounts for a large percentage of the total number of issues of evening edition of general daily newspapers issued in the same Area as of October 1997. - 5 - 3. Hakodate Shimbun Co., Ltd. (whose trade name was changed to the present one from Evening Edition Hakodate Shimbun Co., Ltd., on August 27, 1995. Hereinafter referred to as “Hakoshin-sha”) is a company established on November 15, 1996, having its head office in Hakodate-shi, and issues general daily newspaper “Hakodate Shimbun”, which is an evening newspaper, in the Hakodate Area starting on January 1, 1997 (hereinafter referred to as “Hakodate Shimbun”). 4. Obihiro Tokachi Hokkaido Japan, is a company having its head office in Obihiro-shi, Hokkaido, and issues general daily newspaper “Tokachi Mainichi Shimbun”, which is evening newspaper, in Obihiro-shi and its surrounding area (hereinafter referred to as “Obihiro Area”) (hereinafter referred to as “Kachimai-sha”).