Japan to Regulate Major Tech Companies with New Ordinance

The Japanese government has enacted a new ordinance to regulate tech giants with over 40 million users per month, effective December 19. The Fair Trade Commission will oversee these regulations, which target companies like Apple and Google. The law aims to foster competition in app stores, operating systems, and other services, while fully coming into effect by December 2025.

On December 10, the government of Japan enacted an ordinance aimed at regulating technology giants that maintain a user base of at least 40 million individuals within the country each month. This ordinance will be implemented starting December 19. Companies identified under this regulation will be designated by the Fair Trade Commission as per their notifications. Notably, major American firms such as Apple Inc. and Google LLC may fall under the purview of this new law.

The recent legislative changes are part of Japan’s broader initiative to enhance competition in the tech sector, particularly concerning smartphone applications and other services offered by dominant technology firms. The governing law, which successfully passed the Japanese Diet in June, is set to come into full effect by December 2025, following the finalization of additional details. The ordinance specifically targets four critical areas: application stores, operating systems, web browsers, and search engines, effectively curbing anti-competitive practices such as blocking new entrants and providing preferential treatment to the firms’ own services.

Japan’s new regulatory framework marks a significant step toward ensuring fair competition among major technology companies operating within its borders. With enforcement commencing on December 19 and full implementation anticipated by 2025, the legislation reflects ongoing global conversations about regulating big tech companies. The Fair Trade Commission’s role in monitoring compliance will be pivotal in shaping the competitive landscape of digital services in Japan.

Original Source: www.nippon.com


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