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- Cabinet Decision on the Cabinet Order to Partially Amend 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
Cabinet Decision on the Cabinet Order to Partially Amend 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
July 5, 2022
On July 5, 2022, the above cabinet decision was made. This Cabinet Order will make the digital advertising sector subject to the Act on Improving Transparency and Fairness of Digital Platforms, and after the Cabinet Order comes into force, large-scale digital platforms in that sector will be designated as subject to the regulations.
1. Background to the Cabinet Order amendment
The Act on Improving Transparency and Fairness of Digital Platforms (Act No. 38 of 2020; hereinafter referred to as the "TFDPA") was established in May 2020 as an act for taking necessary measures to improve transparency and fairness on digital platforms, such as those for requiring digital platform operators to disclose terms and conditions and other information, secure fairness in operating digital platforms, submit a report on the current situation of business operation and conduct self-assessment as well as those for requiring the government to publicize the results of its assessment of business operation of the platform.
Last April, the large-scale digital platform providers of comprehensive online shopping malls selling goods and application stores were designated as "specified digital platform providers" subject to TFDPA.
The Final Report on the Evaluation of Competition in the Digital Advertising Market (compiled last April and approved by the Digital Market Competition Council) and Action Plan of the Growth Strategy and Basic Policy on Economic and Fiscal Management and Reform 2021 (both approved by the Cabinet last June) included a decision to make the digital advertising sector subject to TFDPA, in order to address the issues related to this sector.
2. Outline of the Cabinet Order
As a response to the above, this Cabinet Order amends 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, adding the digital advertising sector to the scope of the TFDPA.
Specifically, it adds the following types of business categories and sizes in order to designate "specified digital platform providers" subject to the regulations under the TFDPA.
(1) Media-Integrated Digital Ad Platforms
(Platforms placing advertisers' ads on their own website such as search engines, portal sites, and SNS, by mainly using auctions)
sales of 100 billion yen or more per fiscal year in Japan
(2) Ad Intermediary Digital Platforms
(Platforms mediating between advertisers and website operators, by mainly using auctions)
sales of 50 billion yen or more per fiscal year in Japan
3. Future schedule
- July 8, 2022:
- Promulgation of the amended Cabinet Order, the amended Ministerial Ordinance, and the amended Public Notice (Guidelines)
- August 1, 2022:
- Enforcement of the amended Cabinet Order, the amended Ministerial Ordinance, and the amended Public Notice (Guidelines)
- By September 1, 2022:
- Submission of a notification by a digital platform provider which falls under the business category and scale mentioned above.
- This autumn:
- Designation of "Specified digital platform providers" subject to regulations
Related Documents
For further details, see the Japanese language news release.
Related links
Final Report on the Evaluation of Competition in the Digital Advertising Market, Digital Market Competition Council
Division in Charge
Digital Market Policy Office, Commerce and Information Policy Bureau
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