Japan has enacted an ordinance to regulate technology giants with a monthly user base of at least 40 million, effective December 19. The law targets key areas such as app stores and search engines, aiming to promote market competition and restrict anti-competitive practices.
On December 10, 2023, the Japanese government approved an ordinance aimed at regulating major technology companies with a user base of at least 40 million individuals per month within Japan. This ordinance, set to take effect on December 19, establishes the framework for the country’s Fair Trade Commission to identify and designate companies—particularly American corporations like Apple Inc. and Google LLC—as subject to these new regulations. These measures intend to foster competitive practices across various digital platforms such as app stores, operating systems, search engines, and web browsers by prohibiting anti-competitive actions such as blocking new entrants and prioritizing services owned by the tech firms themselves.
The newly adopted ordinance is part of Japan’s broader legal framework to regulate technology firms, following the passage of related legislation in June 2023. This law aims to create a more equitable marketplace by limiting the powers of dominant firms in key digital sectors. The regulation reflects increasing global scrutiny over the influence and practices of major tech companies, driven by concerns regarding monopoly tactics and market fairness.
In summary, Japan’s ordinance signifies a decisive step towards regulating large tech companies operating within its borders, emphasizing competition and consumer choice in the digital marketplace. As the regulation comes into force, it will likely reshape the operational strategies of major tech entities and underscore Japan’s commitment to fostering a fair and competitive economic environment.
Original Source: www.nippon.com
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