In Japan, a new law for regulating digital platforms called the DP Act became effective on February 1, 2021. The discussion is going on whether to expand the scope of the DP Act to include digital advertisement. The JFTC recently proactively conducted merger reviews in the digital economy, such integrations of digital platforms and so-called killer acquisitions. Whether the JFTC will enforce an ASBP in transactions between digital platforms and consumers in accordance with the new guidelines is also one of the topics that we should be watching.
By Toshio Dokei, Arthur M. Mitchell, Hideo Nakajima & Takako Onoki1
Recently, the digital economy has grown massively worldwide, and people’s lifestyles have changed accordingly. Such developments will most likely continue. Agencies around the world have been exploring options for greater regulation in the digital economy, including for digital platforms. Both innovation and competition are important. Can they coexist? How can we balance them?
This article discusses rules and principles which have been developed to promote transparency and fairness as well as free and fair competition in connection with digital platform businesses. A new Headquarters for Digital Market Competition (“Digital Headquarters”) has been established to monitor the market and amendments have been made to the guidelines and policies of the Japan Fair Trade Commission (“JFTC”) to clarify how mergers involving digital platforms will be ev...