Japanese competition law

President Harry S. Truman, on 6 September 1945, issued a presidential directive instructing the Supreme Commander for the Allied Powers (SCAP) to dissolve Zaibatsu structures.

Seeing the need for stability and the growing threat of Communism, the United States backtracked on requiring Japan's enforcement of the AMA and instead encouraged the resurrection of Zaibatsu structures.

Japan, which had grown increasingly independent of the United States in the 1950s, succumbed to pressures from Japanese business and need for recovery from economic depression due to the end of the Korean War.

The SCAP and the U.S. Government acquiesced to Prime Minister Yoshida's actions to enact relaxations to the AMA when occupation of Japan ended with the implementation of the San Francisco Peace Treaty on 28 April 1952.

The new articles introduced authorised the JFTC to dissolve or divest a company based on barriers against market-entry, lack of price benefit for consumers and unreasonable profits.