U.S. charges 7 Japanese auto executives with price-fixing

The United States charged seven Japanese executives with price-fixing Thursday in a long-running probe into illegal practices in the auto parts industry.

“Protecting American consumers from anti-competitive practices is our top priority,” said Brent Snyder of the US Justice Department’s antitrust unit in a statement.

The second statement explains the first. Japanese executives are used to a "justice" system that is an integral part of the J-Inc. model, and sees its role as promoting orderly competition -- which all too often involves price fixing. The logic being that orderly competition allows many firms to share in the market, and thus promotes more employement -- i.e. a form of socialism -- even if it results in higher prices to the consumer. But the U.S. Justice Department is all about promoting free markets since that, in theory, results in lower prices to the consumer.

The United States is all about protecting its own industries and punishing foreign ones. No matter what rules it agrees to it will find a way to circumvent them.

jerseyboy, the domestic economy here in Japan is heavily socialistic. However, I guess this is the only way the US can punch holes in Japan's success in the US car market and the utter failure of US car manufacturers here in Japan.

Protecting American consumers from anti-competitive practices

Ha is this some kind of joke, how about the anti competitive practice of tariffs on imported cars and trucks?

America sometimes you are a hypocrite, and also a country who has protectionist business practices and allows its banking system to screw everyone in the world because of corruption.

USA is a joke.

The second statement explains the first. Japanese executives are used to a "justice" system that is an integral part of the J-Inc. model, and sees its role as promoting orderly competition -- which all too often involves price fixing. The logic being that orderly competition allows many firms to share in the market, and thus promotes more employement -- i.e. a form of socialism -- even if it results in higher prices to the consumer. But the U.S. Justice Department is all about promoting free markets since that, in theory, results in lower prices to the consumer.

J Inc. does not care one whit about "orderly competition". The practice of price fixing does not promote more employment if higher prices cause less consumption, which in turn causes less production which results in less employment. We all know the population of Japan is declining, which is caused primarily by a high cost of living, in which price-fixing plays more than a small part. The practice of price-fixing has also had the effect of reducing efficiency and the ability of Japanese companies to compete with foreign companies which have always had to compete in a market which is not rigged. Lastly, the windfall profits which came from price fixing in the past were not necessarily passed on to workers, they were kept by the company and spent on things other than payroll.

The issue of price-fixing is the main reaons why Japan will not join TPP, because the treaty gives other companies and countries the ability to sue if practices like price-fixing are found to be occurring.

These Japanese companies need to start getting some good Lobbyists in Washington... you know like American Electric and Cable companies do.

J Inc. does not care one whit about "orderly competition". The practice of price fixing does not promote more employment if higher prices cause less consumption, which in turn causes less production which results in less employment. We all know the population of Japan is declining, which is caused primarily by a high cost of living, in which price-fixing plays more than a small part. The practice of price-fixing has also had the effect of reducing efficiency and the ability of Japanese companies to compete with foreign companies which have always had to compete in a market which is not rigged. Lastly, the windfall profits which came from price fixing in the past were not necessarily passed on to workers, they were kept by the company and spent on things other than payroll.

The issue of price-fixing is the main reaons why Japan will not join TPP, because the treaty gives other companies and countries the ability to sue if practices like price-fixing are found to be occurring.

sangetsu -- hogwash. You have obvioulsy never dealt with the Fair Trade Commission and their ridiculous regulations. Managed/orderly competition is the bedrock of Japan Inc. Predictability is valued over all else. And all the "down-sides" you refer to are exactly why the J-economy has stalled for over 30 years. The model worked great when the economy was growing and all the costs could be passed on to consumers, becuase their incomes were increasing. But now, Japan is simply bloated with cost and will not structurally change to actually allow true competition.

Jerseyboy, Sangetsu,

I believe you BOTH are right to varying degrees. Its well known that Japans excuse for price fixing, diving up market share etc was to promote "stability" meanwhile screwing the people, which they mostly READILY ACCEPTED!

As time has passed & Japan has weakened & nasty demographics kick in it has all come to roost & is now long LONG past being a sustainable way of fleecing the people for J-inc's benefit this price rigging & its inefficiencies are now coming home to roost big time!

Japan always thought it could screw its own so companies could do some business overseas, but now its all going to pot & they don't know what to do & so we get to continue to witness the rot that is so prevalent now in Japan.

And this is one of the reasons I always say Japan MUST re-invent itself or perish, sadly the latter is winning.

Bottom line is Japan has dug this hole their in itself & their price fixing bid rigging ways wont work outside Japan, push has come to shove!

The thing is.... Japan has already went through a post WWII scenario... beaten and left with very little... they rose above the ashes and within 35 years they were the talk of the world... is there a mentality where they need to go to rock bottom before they'll see the light?

This regulation is not to prottect only American Industry. Recall Bridgestone case. Tire prices fixing that made Toyota price up and Bridgestone was guilty. Toyota price went down and consumers benefitted. Mitsubishi and Hitachi did price fixing easily to exclude competitors easiily as they are wealthy affecting other automakers. WW II has nothing to do. Just barring competitors with their money power in USA and that did not work.

UauL

Right you are Toshiko. Japan will never be allowed in TPP because they will NEVER open their markets. Just like in Operation Downfall when they prepared their old ladies with sharpened bamboo sticks, they will NEVER allow equal and open competition on their islands. Sad for their consumers and their future. It is bleak.

When some auto part makers practice price fixing with their cohort, all automakers are affected, After Bridgestone stopped its price fixing custom, other tire makers can market their rires with their own price. Yokohama tire and Nitto tire are marketing in USA now. There are different price fixing. Expensive perfume, mink coat, their price fixing is to make sales price higher. But usually part makers. TPP has nothing to do with USA regulation against price fixing.