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conditional dealing could reach the business scheme presented by Uber, and whether
the JFTC would even consider justifications for this business scheme, may not be for
the near future. Of course, before the JFTC can give its view on Uber and its algorithm,
both have to be present in Japan. Uber only entered Japan in 2020 by partnering with
existing taxi companies. It can thus be presumed that the algorithm functions slightly
75
differently than what we have seen so far across the world.
5. Conclusion
The Japanese AMA has had a complex relationship with facilitators of a cartel.
With the arrival of algorithms, there has been a renewed interest in how the AMA could
deal with cartel facilitators. To what extent can an algorithm be held accountable
as a facilitator of a cartel.
This paper has identified that the algorithm can be put in place by a supplier,
a leading price setter among the competing firms, or an accountancy firm. However,
for the enterprises to be liable as a hub, it is required that there is a competitive
relationship between the hub and the spokes. It is obvious that this relationship is present
in case the hub is a leading price setter among the competing firms and is absent in case
the hub is an accountancy firm. When the hub is a supplier, the issue is open for discussion
as all are active in relation to the same product. Algorithms would not change
the situation. In the end, the algorithms are a mere tool in the hands of any of these
enterprises.
More controversial is when the algorithm is acting as a hub. From the two
scenarios we have discussed, it is only possible to bring the algorithm under the AMA
if there has been communication among the competing firms to employ the same
algorithm. As long as the application of the same algorithm by competitors is
a coincidence, the AMA would not apply. If the hub is being operated by an enterprise
different from the competition spokes, we have argued that, due to the lack of
75 Available at: https://www.japantimes.co.jp/news/2020/07/03/business/corporate-business/uber-starts-
in-tokyo/. Accessed 15 December 2020.
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