Japan's antitrust legislation needs upgrading. The Fair Trade Commission is preparing a revision bill to bring the Antimonopoly Law more into line with international standards by tightening the penalties for business-restricting practices. Nippon Keidanren, the Japan Business Federation, has already worked out its own plan. The administration of Prime Minister Junichiro Koizumi defines antitrust reform as an integral part of its "structural reform" agenda.

The FTC reportedly hopes that the bill will be enacted during an extraordinary Diet session this autumn. The going may be tough, however, because of the wide disagreement that exists between the commission and Keidanren, the nation's most powerful business lobby. Both plans need to be discussed broadly, preferably with the participation of consumers as well.

The debate needs to be conducted with the primary focus on bid-rigging, an entrenched corporate practice that refuses to go away despite strong criticism at home and abroad. Cases of bid collusion among public-works contractors, for example, are not uncommon. Tighter regulations against these and other illicit moves to win contracts will go a long way toward reviving the Japanese economy and boosting its international competitiveness.