Eliminating the supply-demand adjustment regulation
The supply-demand adjustment regulation is a form of entry regulation banning new businesses from entering a market when the industry is deemed oversupplied. However, in view of the fact that Japan's transportation market has reached maturity, Japan has begun deregulating transportation services except for minimal regulations intended to ensure safety and user protection. In the process, the government intends to activate and improve the efficiency of transportation services while improving user convenience by offering diversified and advanced services. To break with conventional transportation policies, the Ministry of Transport decided to phase out the supply-demand adjustment regulation in railway, motor vehicle, marine transport, and civil aviation beginning in FY1999 to be completed by FY2001 at the latest.