Following the U.S. and Europe, the Japanese government has also established a new regulation for tech giants. The regulation for Japan tech giant will prevent global IT giants from abusing their market power. The example for that tech giants is Google, Apple, and others.
According to the new regulation, it is mandatory to report transactions between these global IT businesses and small and medium businesses to the government and to limit their use of personal data.
A Reuters article reported that the Japanese government finalized the regulatory proposal at Digital Market Competition Conference on the 17th. The report predicted that not only global giant tech companies such as Google, Amazon, Facebook, and Apple will be subject to regulations. But also Japanese businesses such as Rakuten, Yahoo and others as well.
“Discussions on the regulation and adjustment of the digital market are taking place around the world, ” Chief Cabinet Secretary Yoshihide Suga said. ” Japan has also proposed new regulations. ”
While Japan’s Economy Minister Yasutoshi Nishimura told reporters:
“We want to put the new law into effect in the way that would make business transactions become transparent without imposing excessive burdens or hampering innovation.”
How Japan will manage the tech giants through the new bill
The new bill will prevent large IT companies from monopolizing the market. It will also require the companies to disclose the terms of their trade contracts with small and medium companies. Including online operators, and notify them in advance when the contract changes.
It is also planning to establish a monitoring system that allows such transactions to get reported to the government periodically. If companies fail to disclose information, the government will be able to issue an order for improvement.
Regulations on the handling of tech giants’ personal information will also be tightened. Accordingly, the Japanese government is going to revise its guidelines on the operation of antitrust laws. So that large IT companies can not collect and use personal information unfairly.
In addition, the government will introduce a right to stop consumers from using their personal data. And it will become more prudent to review tech giants acquisitions. The Japanese government has recently launched an antitrust probe on the digital advertising market and plans to come up with countermeasures early next year.