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- Designation of Digital Platform Providers Subject to Specific Regulations Under the Act on Improving Transparency and Fairness of Digital Platforms (TFDPA)
Designation of Digital Platform Providers Subject to Specific Regulations Under the Act on Improving Transparency and Fairness of Digital Platforms (TFDPA)
- A Digital Platform Consultation Desk for operators that use digital advertising is also established -
October 3, 2022
The Act on Improving Transparency and Fairness of Digital Platforms is an act for taking necessary measures for securing transparency and fairness in trading between digital platform providers and business users of digital platforms. Today, METI designated the digital platform providers in the digital advertising sector subject to its specific regulations. It also established a consultation desk for providing consultation services for business users of digital platforms in the digital advertising sector and support toward solving problems.
1. Background and purpose
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, as seen in undisclosed changes to terms and conditions, and non-provision of reasons for refusal to trade in some markets. In light of this situation, 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, and brought into force in February 2021.
The TFDPA designates digital platform providers whose transparency and fairness must be significantly improved in particular among other digital platforms as "specified digital platform providers," and makes such providers subject to specific regulations.
Three comprehensive online shopping malls and two app stores were designated as "specified digital platform providers" subject to regulation under the TFDPA in April 2021.
2. Designated digital platform providers subject to specific regulations
Today, METI designated the following digital platform providers as "specified digital platform providers" in the digital advertising sector.
The TFDPA requires the specified digital platform providers to disclose terms and conditions and other information, develop procedures and systems to ensure their fairness in a voluntary manner, and submit a report every fiscal year giving an overview of measures that they have conducted, to which self-assessment results are attached.
(1) Media-Integrated Digital Ad Platform Providers
* Platforms placing advertisers' ads on their own website such as search engines, portal sites, and SNS, by mainly using auctions
| Designated digital platform providers | (Reference) Details of businesses subject to specific regulations |
|---|---|
| Google LLC | A business that displays ads on Google Search or YouTube through Google Ads, Display & Video360, and other advertisement distribution services for advertisers |
| Meta Platforms, Inc. | A business that displays ads on Facebook (including Messenger) or Instagram through Facebook Ads, an advertisement distribution service for advertisers |
| Yahoo Japan Corporation | A business that displays ads on Yahoo! Japan (including Yahoo! Search) through Yahoo! Advertising, an advertisement distribution service for advertisers |
(2) Ad Intermediary Digital Platform Providers
* Platforms mediating between advertisers and website operators, by mainly using auctions
| Designated digital platform providers | (Reference) Details of businesses subject to specific regulations |
|---|---|
| Google LLC | A business that displays ads in media owners' ad spaces from AdMob, AdSense, and other services through Google Ads, Display & Video360, and other advertisement distribution services for advertisers |
3. Establishment of the Digital Platform Consultation Desk (for business user of digital advertising platforms)
As one of the efforts to ensure effective implementation of the TFDPA, METI has established a consultation desk for business user of digital platforms that offers advice through free consultations with expert consultants on business concerns and other relevant topics.
Today, METI has established a new consultation desk for business users of digital advertising platforms such as advertisers and operators of websites and other media that publish ad spaces.
Main support provided
- Advice on how to ask questions of and discuss matters with digital platform providers (e.g., measures taking into account past incidents, facilitation of mutual understanding between digital platform providers)
- Providing information on and financial assistance to hire lawyers
- Conducting seminars and legal consultation meetings for business users
- Identifying issues common to multiple business users seeking advice, and considering how to solve them
(Includes evaluations of actual conditions, e.g., hearings) and more
METI will aim to improve the business environment by taking the business-related issues it hears about from business users through the consultation desk, identifying common themes among them, and sharing them among stakeholders.
* For example, the information brought to the consultation desk is used in the process of reviewing the Transparency and Fairness of Specified Digital Platforms conducted every year under the TFDPA (called as “Monitoring Reviews”). In the Monitoring Review, the information is shared and discussed by experts and other relevant parties, and METI publishes evaluation of transparency and fairness of specified digital platforms. The specified digital platform providers must work toward improving their operations based on the results of the evaluations.
Digital Platform Consultation Desk for business users of digital ad platformsEligible applicants: Advertisers, advertising agencies, operators of websites and other media that publish ads spaces, and othersContractor: Deloitte Touche Tohmatsu LLC Date and time: Weekdays 9:00-12:00, 13:00-17:00 (excluding Saturdays, Sundays, and other holidays.) Please inquire via the website  (in Japanese)Email: info@digi-ad.meti.go.jp  Phone: 0120-351-034 |
Deloitte Touche Tohmatsu LLC has been commissioned by METI to establish a digital platform consultation desk. The organization will handle personal information appropriately in accordance with METI's privacy policy, and only use it for the purposes of carrying out the commissioned work.
Related links
- Digital Platforms
- Digital platforms (for business users of digital platforms) (in Japanese)
- 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)
- Final Report on the Evaluation of Competition in the Digital Advertising Market, Digital Market Competition Council (April 27, 2021)
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