Business constraints or intensified competition resulting from changes in laws and regulations
First written in FY2016. 1 of 3 entries say "Restated". Latest entry: FY2020.
Japan Communications moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 3 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「Following the enforcement of the amended Telecommunications Business Act in October 2019, excessive cash-back incentives offered by mobile operators became subject to regulation. This reduced the number of ultra-short-term subscribers seeking such incentives, resulting in a substantial decline in our group’s sales in the second half of the consolidated fiscal year.」
The risk of changes in the competitive environment resulting from regulatory changes materialised in the form of a decline in ultra-short-term subscribers seeking cash-back incentives and a substantial decrease in sales in the second half. - FY2017RestatedAnnual report
「If changes to these regulations or the application of new laws and regulations strengthen constraints on the business, business activities may be restricted or costs may increase. Conversely, if constraints on the business are eased, competition may intensify as a result of increased market entry, which could adversely affect the performance of our group.」
The company is reiterating both tighter constraints resulting from stricter regulation and increased market entry and intensified competition resulting from deregulation as risks. - FY2016First statedAnnual report
「If changes to these regulations or the application of new laws and regulations strengthen constraints on the business, business activities may be restricted or costs may increase. Conversely, if constraints on the business are eased, competition may intensify as a result of increased market entry, which could adversely affect the performance of our group.」
While describing deregulation as a business opportunity, the company also identifies increased market entry resulting from deregulation as a risk.