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Home News New Law Expected to Rectify IT Giants’ Dominance in Digital Market

New Law Expected to Rectify IT Giants’ Dominance in Digital Market

by Celia

Japan has taken a significant step towards curbing the dominance of information technology giants with the enactment of a new law aimed at regulating their questionable activities. The legislation, passed on Wednesday, is expected to bring Japan in line with the European Union and the United Kingdom, which have already implemented similar measures to rein in the influence of these giants and promote a fairer digital market.

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The Japan Fair Trade Commission (JFTC) is poised to play a pivotal role in fostering a more competitive environment in the digital sphere by bolstering its workforce dedicated to overseeing these regulations.

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Takamasa Kishihara, managing director of the Mobile Content Forum, expressed optimism about the new law, noting that it could mitigate the industry’s frustration with the restrictive practices imposed by companies like Apple Inc. and others. He emphasized the necessity for the government to leverage the law effectively to ensure fair business practices.

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However, for IT giants accustomed to operating with relative autonomy, the tightened regulations could translate into reduced profitability. In the European Union, where similar regulations are already in place, efforts are underway to soften their impact, reflecting the industry’s resistance to stringent oversight.

Amidst concerns raised by companies like Apple regarding the potential impact on security and operational freedom, they have nevertheless signaled readiness to cooperate with the JFTC. Google LLC has also committed to engaging in constructive dialogue with relevant stakeholders and government authorities.

Looking ahead, the JFTC’s role is set to expand significantly under the new law. As part of Prime Minister Fumio Kishida’s broader economic agenda, the government aims to enhance both the capacity and capability of the JFTC to enforce these regulations effectively.

The enactment of this law marks a critical juncture for Japan’s digital economy, balancing innovation with the need for fair competition, while setting a precedent for regulatory frameworks in the global tech industry.

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