A STUDY ON THE THEORIES AND GOVERNMENTAL REGULATIONS FOR THE MITIGATION OF THE EXPLOITATION PROBLEMS IN INTERCOMPANY SUBCONTRACT RELATIONS

Abstract

 In Japan, the exploitation problem in intercompany subcontract structures has been discussed for many years as a source of exhaustion of SMEs. In recent years, the exploitation problem has been intensifying and the solution has been sought. In this study, to obtain knowledge that contributes to the measures to secure proper business-to-business transactions in Japan, we summarized the postwar history of theories of exploitation and the governmental regulations that have progressed based on them. As a result, it was suggested that there have been two major streams that can be called "the SMEs theory approach" and "the antitrust law approach" in academic research, and that there have been laws and regulations derived from each. In addition, the regulations and the definitions of exploitation derived from both theoretical approaches have their own advantages and disadvantages, and it was shown that it is necessary to generalize the definitions for a comprehensive discussion. Furthermore, the historical review of governmental regulations suggested that “Keiretsu” system, a traditional form of intercompany relations in Japan, deserves revaluation even though it has been criticized as an anti-competitive business practice.