Notification of Cease-and-Desist Orders and
Administrative Surcharge Payment Orders from the Japan Fair Trade
Commission
March 18, 2014
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.
- 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.
- Outline of the surcharge payment
Amount of surcharge: 5,698,390,000 yen
- 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.
- 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.
