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Japan’s Ministry of Economy, Trade and Industry (METI) has issued its inaugural advisories under the country’s stringent digital platform regulations, targeting Amazon.com Inc.’s Japanese subsidiary and Apple Inc. This marks a significant enforcement action under the Platform Transparency and Fairness Law, which was introduced in 2021 to enhance accountability and transparency among digital platforms.
The advisories, announced on Friday, highlight specific compliance issues faced by these tech giants. Amazon Japan has been reprimanded for its failure to provide clear and timely notifications regarding changes in commission rates. The company’s notices lacked sufficient detail and did not offer explanations for the adjustments, undermining the law’s mandate for transparency in financial terms.
Similarly, Apple has been called out for neglecting to provide Japanese translations of updated contract terms to app developers within the legally mandated timeframe. This oversight has not only impeded the clarity of contractual obligations for local app suppliers but also breached the legal requirement for language accessibility.
The Platform Transparency and Fairness Law aims to curb the opacity and arbitrariness that often characterize digital platform operations, ensuring that changes in terms or conditions are communicated transparently and fairly. METI’s actions signal a firm stance on enforcing these regulations, highlighting the government’s commitment to creating a more equitable digital marketplace.
Amazon Japan has been instructed to simplify its notices regarding commission changes and to provide clear explanations for any future modifications. Apple has been advised to rectify its approach to translating contractual changes, ensuring that all affected parties are adequately informed in Japanese.
This enforcement action underscores Japan’s increasing vigilance in regulating global tech companies operating within its jurisdiction, setting a precedent for future compliance and transparency in the digital economy.