On September 6, 2012, the Japan Fair Trade Commission (the “JFTC”) investigated KAWASAKI KISEN KAISHA, LTD. (“K” Line) due to a suspected violation of the Antimonopoly Act of Japan regarding ocean shipment of automobiles. Since then, “K” Line has fully cooperated with the relevant JFTC investigations.
”K” Line announced today that the JFTC has issued cease-and-desist orders and administrative surcharge payment orders to the Company for violating Article 3 (Unreasonable Restraint of Trade) of the Antimonopoly Act of Japan.
We express our sincere regret for the concern this matter has caused to our customers, shareholders and concerned parties.
1. Outline of Cease-and-Desist orders
“K” Line was ordered, among other things, to confirm that it has discontinued acts that are in violation of Article 3 (Unreasonable Restraint of Trade) of the Antimonopoly Act of Japan, to comply with guidelines concerning the observation of the Antimonopoly Act of Japan and to implement periodic training for its employees and periodic audits.
2. Outline of the surcharge payment
Amount of surcharge: 5,698,390,000 yen
3. Response
“K” Line regards the situation with the utmost gravity and will take comprehensive measures to ensure strict compliance with all applicable laws and regulations.
In light of the seriousness of this matter, the CEO, and the Directors and the Executive Officers who are in charge of the concerned sector, have decided to return voluntarily 10-30% of their monthly remuneration for three months.
4. Impact on results
“K” Line has already recorded an extraordinary loss related to the Antimonopoly Act of Japan of 5.721 billion yen as a reverse of provisions in conjunction with the third quarter of the fiscal year 2013.