THE JAPAN NEWS


 

The government will impose new regulations on tech giants from next spring, such as requiring them to notify business partners, such as online shop operators, at least 15 days in advance when changing their terms and conditions, The Yomiuri Shimbun has learned.

The government will also require them to state their reasons if any unfair treatment is reported regarding the treatment of their own products versus products of other companies. The Economy, Trade and Industry Ministry will hire several experts in the IT field to investigate the current situation among dominant companies in the industry.

The regulations will be set out in a government ministerial ordinance or guidelines based on the law concerning the enhancement of transparency and fairness of specified digital platforms, enacted in May this year. Such tech giants as Google, Apple, Amazon, Rakuten and Yahoo are expected to be subject to the regulations.

The regulations will stipulate that such leading tech companies will be required to notify their business partners 15 days in advance when changing the terms and conditions of transactions, such as commission fees for opening an online shop on their site, and 30 days beforehand when ceasing to do business.

The tech giants will also be required to explain the reasons when their own products are given preferential treatment, for example in commission fees, compared to products of business partners.

The government also aims to improve a consultation system to properly respond to complaints.

The new law obligates tech giants to compile annual business reports. The ministry and organizations related to tech fields will set up consultation services so that business complaints and other issues can be addressed promptly.

The IT experts to be hired by the ministry will be in charge of monitoring the tech giants closely through analyzing their businesses and technologies.

It has been found through an investigation by the Fair Trade Commission on online shopping and smartphone app market that such companies, being in stronger positions, have forced unilateral agreements upon their business partners.