Visa Worldwide's Business Improvement Plan has been approved by the Japanese Fair Trade Commission
In a landmark decision, the Japan Fair Trade Commission (JFTC) has taken administrative action against Visa Worldwide Pte Ltd, a Singapore-based company that operates Visa card operations in Japan and other parts of the Asia-Pacific region. The move comes in response to allegations that Visa Worldwide violated Japan's antimonopoly law through its credit card network operations.
The JFTC's investigation, which began in 2020, focused on a suspected violation of the antimonopoly law. The commission found that Visa Worldwide implemented a policy in November 2021, after announcing it in February 2018, to offer preferential fee rates for credit card transaction settlements only to acquirers (payment acceptance businesses) that exclusively used Visa's authorization system. This policy, the JFTC concluded, effectively forced credit card companies managing merchant outlets to adopt Visa's proprietary system, restricting competition by disadvantaging companies using rival systems.
The authorization system, crucial for fraud detection and spending limit checks, generates approximately 10 billion yen (~$68 million) annually in fees from companies using it. The JFTC's decision aims to restore a competitive environment by preventing Visa from forcing exclusive use of its authorization system via preferential pricing, marking a significant regulatory milestone for Japan’s credit card industry and potentially influencing global payment networks' regulatory scrutiny.
Despite finding that Visa Worldwide's conduct amounted to a transaction condition restraining competition prohibited by the antimonopoly law, the JFTC opted not to impose harsher sanctions. Instead, Visa Worldwide submitted a business improvement (commitment) plan, which the JFTC approved on July 22, 2025. This plan includes measures to eliminate the restrictive practice and a five-year implementation and monitoring period managed by a third party to ensure compliance.
This is the first administrative action ever taken by the JFTC against a credit card brand. Some acquirers have taken advantage of the preferential rates offered by Visa Worldwide, but the JFTC's commitment procedure under Japan's antimonopoly law allows corrective measures to restore competition without imposing penalties, conditional on Visa's reliable implementation of its plan.
The press release about this matter was issued by the JFTC on July 23, signalling a commitment to transparency and accountability in the enforcement of Japan's antimonopoly law. The decision serves as a reminder to all businesses operating in Japan to uphold fair competition practices, ensuring a level playing field for all players in the market.
- The decision made by the Japan Fair Trade Commission (JFTC) to take administrative action against Visa Worldwide Pte Ltd could potentially influence the regulatory scrutiny of global payment networks in the arts and finance sector, as it aims to restore a competitive environment among businesses, including the credit card industry.
- The JFTC's investigation and subsequent decision against Visa Worldwide, which centers around allegations of violating Japan's antimonopoly law, highlights the commission's focus on maintaining fair competition practices within the environment of the Japanese business and industry, given the substantial fees generated by the authorization system used by many businesses.
- The commitment procedure under Japan's antimonopoly law, demonstrated through the JFTC's decision to take action against Visa Worldwide, provides a means for businesses to rectify practices that restrict competition, ensuring a level playing field in the market while diminishing the need for harsher penalties, ultimately encouraging adherence to fair competition practices across various industries.
