The Japan Fair Trade Commission issued a recommendation after finding that NIKKO CO.,LTD. had reduced payments to 16 subcontractors. Going forward, the company is required to confirm by resolution of the board of directors that payments for contract manufacturing will not be reduced.
On 30 October 2026, the Japan Fair Trade Commission issued a recommendation to NIKKO CO.,LTD. under Article 7, paragraph 2 of the former Subcontract Act. The company manufactures and sells bolts and other products, has capital of ¥30 million, and is headquartered in Yao, Osaka.
According to the outline of the violation, between December 2024 and December 2025, NIKKO CO.,LTD. reduced subcontracting payments at a fixed rate to secure its own profits, deducting a total of ¥17,128,945 from the subcontracting payments. The amount has since been paid.
The main recommendation requires the company to confirm, by resolution of the board of directors, that it will not reduce payments for contract manufacturing or other entrusted work where the reduction is not attributable to any fault of the small or medium-sized entrusted business.
The recommendation concerns a case under the former Subcontract Act. Matters subject to the Act on the Promotion of Proper Transactions Including the Proper Subcontracting of Small and Medium-sized Enterprises following the amendment are also listed. A PDF recommendation document has been made available as a related file.