Regarding the Japan Fair Trade Commission's announcement on transactions with Tokyo Electric Power Company Holdings, Inc. on telecommunications equipment for electric power systems
Tokyo, July 12, 2016 - The Japan Fair Trade Commission today announced a decision to issue a Cease and Desist Order and an Order for Payment of Surcharge against several companies for activities in violation of antitrust law with respect to transactions with Tokyo Electric Power Company Holdings, Inc. on telecommunications equipment for electric power systems. NEC Corporation will not receive either of the above orders following the recognition of its petition to participate in the Fair Trade Commission's surcharge reduction and exemption system (leniency system). However, it is highly regrettable that NEC Corporation's activities were identified as violating antitrust law and the Company would like to respectfully apologize for any troubles this matter may have caused for the Company's customers, shareholders and other stakeholders.
Going forward, NEC Corporation aims to strengthen its compliance system and to ensure the implementation of thorough measures to prevent a recurrence of this issue, while continuing efforts to restore confidence.
NEC Corporation treats these circumstances with great seriousness and Company officers will voluntarily relinquish portions of their compensation as outlined below.
|Chairman of the Board
|30% reduction for 1 month
|President and CEO
|Same as above
|Related Operating Officers
|10 - 20% reduction for 1 month