[Breaking News] Japan Fair Trade Commission Issues Cautions to Four Live Streamer Agencies: Post-Termination Activity Restrictions May Violate the Antimonopoly Act

Overview: Issues Concerning Non-Compete Obligations in the Live Streaming Industry

On December 9, 2025, the JFTC issued cautions to four live streamer agencies that are among the top agencies by transaction volume on the live streaming platform “Pococha,” regarding conduct that may violate the Antimonopoly Act.^[2]

Conduct Subject to the JFTC’s Cautions

In their management agreements with affiliated live streamers, the four agencies included provisions that restricted the live streamers’ business activities for a certain period after termination of the contract, without reasonable justification, for the purpose of deterring transfers to other agencies or independence.

The specific restrictions included all or part of the following:

1. Prohibition on engaging in live streaming activities
2. Prohibition on entering into management agreements with other live streamer agencies
3. Prohibition on engaging in the same type of business as the agency

Issues Under the Antimonopoly Act

These restrictions limited post-termination activities despite lacking reasonable necessity and proportionality as measures to prevent the leakage of trade secrets or similar information. As a result, they were deemed likely to reduce business opportunities for other live streamer agencies or newly established agencies and to adversely affect fair and free competition among live streamer agencies.

Accordingly, the JFTC determined that such conduct may lead to violations of the provisions of the Unfair Trade Practices, namely Trading on Restrictive Terms or Interference with a Competitor’s Transactions. From the perspective of preventing such situations before they materialize, the JFTC issued cautions, and it was reported that the four agencies expressed their intention to review the relevant restrictions during the course of the examination.

JFTC Competition Policy: Ensuring Fair Transactions in the Entertainment Industry

The cautions form part of the JFTC’s ongoing efforts to promote fair transactions in the entertainment industry, aimed at supporting individual creators in fully exercising their creativity.

“Report on Market Study on Transactions Between Performers and Entertainment Agencies in the Music and Broadcasting Industry” (published December 2024)

Recognizing that individual creators have become the primary source of competitiveness in content industries such as animation, music, broadcasting programs, films, games, and manga, the JFTC published the above report in December 2024.^[3]

The report organizes types of conduct that may raise issues under the Antimonopoly Act or competition policy, including transactions between performers and talent agencies.

“Guidelines on Ensuring Fair Transactions between Performers, Talent Agencies, Broadcasting Businesses, Record Companies” (issued September 2025)

Based on the results of the market study, the JFTC, jointly with the Cabinet Secretariat, issued the above Guidelines in September 2025.^[4]

In light of the following considerations, the Guidelines, as a general rule, call for refraining from stipulating non-compete obligations or similar restrictions in contracts, and for deleting such provisions from existing contracts where they are already stipulated:

• Degree of Disadvantage: Non-compete obligations directly restrict performers’ business activities and impede their freedom to engage in transactions and activities based on independent judgment, resulting in a substantial degree of disadvantage.
• Purpose: While such obligations may have pro-competitive effects where reasonable necessity and proportionality are recognized for preventing the leakage of trade secrets or similar information, in the entertainment industry performers generally engage only in performances and are not involved in the management of talent agencies. Therefore, performers’ access to trade secrets is exceptional, and in most cases the necessity and proportionality of imposing non-compete obligations are unlikely to be recognized.
• Alternative Measures: In exceptional cases where performers do have access to trade secrets or similar information, agencies should consider entering into confidentiality agreements that directly prohibit the disclosure of such information.

Practical Implications and Recommended Actions

The cautions were issued in relation to conduct previously identified as raising competition law concerns in the report and the Guidelines, and they demonstrate the JFTC’s proactive stance in addressing specific cases.

There remains a possibility that the JFTC may issue cautions or take other actions with respect not only to the conduct highlighted in this case but also to other conduct that may raise potential competition law concerns.

Accordingly, talent agencies, including live streamer agencies, should take note of the following points:

• Review of Contractual Clauses on Non-Compete Obligations
  Agencies should promptly delete or revise post-termination non-compete obligations or similar restrictions if such clauses are included in their contracts.
• Comprehensive Review of Current Practices and Assessment of Necessary Actions
  • Review current practices with reference to the report and the Guidelines to identify whether any conduct may raise potential competition law concerns
  • If such conduct exists, discontinue it or implement corrective measures such as deleting or revising contractual provisions
  • Enhance internal compliance awareness through measures including internal training programs

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[1] The Designation of Unfair Trade Practices refers to a set of business practices formally designated by the JFTC by public notice under the Antimonopoly Act. It sets forth specific types of conduct that are deemed likely to impede fair and free competition, and Article 19 of the Antimonopoly Act prohibits business operators from engaging in such practices. See https://www.japaneselawtranslation.go.jp/ja/notices/view/16.

[2] See Japan Fair Trade Commission, “JFTC Issues Cautions to Live Streamer Agencies,” December 9, 2025 (https://www.jftc.go.jp/en/pressreleases/yearly-2025/December/251209.html).

[3] See Japan Fair Trade Commission, “Market Study on Transactions Between Performers and Entertainment Agencies in the Music and Broadcasting Industry (Market Study on Ensuring Fair Transactions to Support Creators),” December 26, 2024 (https://www.jftc.go.jp/en/pressreleases/yearly-2024/December/241226.html).

[4] See Japan Fair Trade Commission, “Publication of the Guidelines on Ensuring Fair Transactions between Performers, Talent Agencies, Broadcasting Businesses, Record Companies,” September 30, 2025 (https://www.jftc.go.jp/houdou/pressrelease/2025/sep/250930_geinoushishin.html) (Japanese only).