ABSTRACT
The content and direction of Japanese legislation and policy on digital platforms (DPs) is discussed and formulated mainly by the Headquarters for Digital Market Competition established in the Cabinet. Based on the discussions there, new and revised guidelines have been established by the Japan Fair Trade Commission (JFTC), and the Act on Improving Transparency and Fairness of Digital Platforms (Transparency Act) has been promulgated. As for competition law, the JFTC’s enforcement of the Antimonopoly Act is limited to a small number of cases and plays a marginal role in the regulation of DPs compared with that of the European Union (EU) since the mid-2010s and the United States since October 2020. Rather, the Transparency Act, under the jurisdiction of the Ministry of Economy, Trade and Industry, occupies a central position in Japan’s DP regulation. Although the Act is based on the concepts of ‘agile governance’ and ‘co-regulation’, including self-regulation plus a monitoring review, it may lack the necessary conditions for the co-regulation to work effectively. Therefore, if the implementation of the Act shows that it is insufficient to solve the problems raised by DPs, then Japan may need to consider more effective regulatory measures, including ex-ante regulation similar to the Digital Markets Act in the EU.
