New law expected to rectify the dominance of IT giants in the digital market; Discussions on boosting JFTC expected

The introduction of a law aimed at regulating questionable activities of information technology giants will trigger new regulations. The new legislation will allow Japan to overtake the European Union and the United Kingdom in regulating IT giants and is expected to help weaken their grip on the market.

The Japan Fair Trade Commission will continue to build an appropriate competitive environment in the digital market by increasing the number of staff working in the field.

“IT giants have overwhelming influence, so until now we have had no choice but to simply follow what they dictate. We hope the government will make full use of the new law and realize fair business practices,” said Takamasa Kishihara, director of the Mobile Content Forum, an app industry group.

He said the app industry is becoming increasingly frustrated by the various restrictions imposed by Apple Inc. and other IT giants.

For IT giants, stricter regulations could lead to lower revenues. In the EU, which was the first to fully implement a new law aimed at keeping IT giants in check, there have already been attempts to weaken regulations. Apple, for example, has indicated that it plans to introduce a separate fee for developers when they use other companies’ app stores.

“IT giants may be trying to outsmart regulations. We cannot let our guard down,” Kishihara said.

In response to the passage of the new law, Apple released a note stating that it will work closely with the JFTC, although Apple’s concerns include the security impact of the new law, indicating opposition to the new law prescribing the operation. from competing app stores.

Google LLC has announced that it will deepen constructive conversations with government and industry stakeholders.

The number of JFTC officials involved in the new legislation currently stands at fourteen. But full-fledged discussions are expected on strengthening the JFTC. In a draft of a revised action plan for Prime Minister Fumio Kishida’s “new capitalism” initiative unveiled Friday, the government included a plan to comprehensively strengthen the structure of the JFTC in terms of both quality and quantity in connection with the new law.