Society

Japan's new law regulates IT giants

Feb 01 (NHK) - A new law took effect in Japan on Monday to prevent digital platform providers from using their advantageous positions to form unfair contracts with business partners.

The legislation covers operators of e-commerce sites with sales of more than 2.8 billion dollars per year in Japan, as well as app stores that earn over 1.9 billion dollars. Amazon, Google, Apple, Yahoo Japan, and Rakuten would be presumably covered.

The law requires large IT firms to clarify the terms of their contracts with business partners and give prior notice if they want to make changes.

If they fail to comply the industry ministry can issue orders to do so.

The ministry can ask the Fair Trade Commission to take action if any company is suspected of violating the anti-monopoly law.

Moves to regulate digital platform providers are also underway in the European Union.

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