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- Cabinet Decisions Made on Two Cabinet Orders for the Act on Improving Transparency and Fairness of Digital Platforms
Cabinet Decisions Made on Two Cabinet Orders for the Act on Improving Transparency and Fairness of Digital Platforms
January 26, 2021
On January 26, 2021, Cabinet Decisions were made on two Cabinet Orders: the Cabinet Order for Stipulating the Enforcement Date of the Act on Improving Transparency and Fairness of Digital Platforms; and the Cabinet Order for Stipulating the Business Category and Scale under Article 4, Paragraph 1 of the Act on Improving Transparency and Fairness of Digital Platforms. The former will allow enforcement of the Act on Improving Transparency and Fairness of Digital Platforms (Act No. 38 of 2020; hereinafter referred to as the “TFDPA”) on February 1, 2021, as an act for taking necessary measures for securing transparency and fairness in trading between digital platform operators and digital platform user businesses. In addition, the latter order will allow designation of large-scale operators of comprehensive online shopping malls selling goods and operators of application stores as businesses subject to the regulations under the New Act.
1. Outline of the TFDPA
In recent years, digital platforms have dramatically improved users’ access to markets and have been playing important roles in society. Meanwhile, concerns have been raised about low transparency and fairness in trading as seen in undisclosed changes in terms and conditions, and no provision of reasons for refusal to deal in some markets. In light of this situation, TFDPA was established in May 2020 as an act for taking necessary measures to improve transparency and fairness in trading on digital platforms, such as those for requiring digital platform operators to: disclose terms and conditions of trading and other information, secure fairness in operating digital platforms, submit a report on the current situation of business operation and conduct self-assessment of the report as well as those for requiring the government to publicize the results of its assessment of the report and to take other actions.
2. Summary of the Cabinet Orders on which Cabinet Decisions were made
(1) Cabinet Order for Stipulating the Enforcement Date of the Act on Improving Transparency and Fairness of Digital Platforms
The Cabinet Order is to stipulate the enforcement date of TFDPA as February 1, 2021.
(2) Cabinet Order for Stipulating the Business Category and Scale under Article 4, Paragraph 1 of the Act on Improving Transparency and Fairness of Digital Platforms
The Cabinet Order is to stipulate the provisions as below in terms of the business category and scale in order to designate “specified digital platform providers” as businesses subject to TFDPA:
- Businesses operating comprehensive online shopping malls selling goods: Those having sales of 300 billion yen or more per fiscal year in Japan; and
- Businesses operating application stores: Those having sales of 200 billion yen or more per fiscal year in Japan.
3. Future schedule
February 1, 2021: Enforcement of TFDPA; Promulgation and enforcement of related ordinances and public notices (policies)
By March 1, 2021: Submission of a notification by businesses providing a digital platform which fall under the business category and scale mentioned above.
In the spring of 2021: Designation of “specified digital platform providers”
Links to related information
- Cabinet Decision on the Bill for the Act on Improving Transparency and Fairness of Digital Platforms (February 18, 2020)
- Headquarters for Digital Market Competition (in Japanese)
Division in Charge
Digital Market Policy Office, Commerce and Information Policy Bureau