I am not sure whether it is a violation of the Fair Trade Act… A business partner is being pressured to cut off dealings with us

Hello. This is a Fair Trade Act attorney who has handled many cases involving violations of the Fair Trade Act.

The matter you asked about may be assessed as pressure using a superior bargaining position or as interference with transactions, going beyond the scope of ordinary business competition, so it is necessary to examine whether there is a violation of the Fair Trade Act.

In particular, if a competitor exerted pressure on a business partner in the manner of saying "we will impose a disadvantage if you do not cut off the dealings," this may constitute an unfair trade practice under the Fair Trade Act (such as coerced dealing, refusal to deal, or interference with dealings).

However, for a violation of the Fair Trade Act to be recognized, it must be comprehensively examined whether there was influence sufficient to actually shake the trading relationship rather than mere words, whether it occurred repeatedly, and whether the business partner was in a situation where refusal was realistically difficult.

The response usually proceeds in the following order: ① securing statements from the business partner (such as a written confirmation), ② securing materials showing the circumstances of the pressure, such as text messages, emails, and recordings, ③ organizing whether actual harm occurred, such as suspension of dealings or reduction of volume, and ④ reviewing the possibility of a report to the Fair Trade Commission or a civil claim for damages.

In cases involving a violation of the Fair Trade Act, if objective evidence is insufficient, the Fair Trade Commission may not recognize any illegality, and the matter may be judged to be a mere trade dispute between businesses and closed.

Therefore, it is important to systematically organize materials that can prove the circumstances of the pressure and the fact of the harm from the early stage.