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Japan eyes legislation to regulate global IT giants

  • June 5, 2019
  • , Kyodo News , 5:48 p.m.
  • English Press

TOKYO — The Japanese government said Wednesday it plans to submit a bill to parliament next year to regulate global and domestic information technology giants amid concerns some are stifling fair competition on the back of overwhelming market shares.


The bill to enhance transparency in business transactions of tech firms will be presented to the ordinary Diet session to be convened in January, according to a draft economic growth strategy shown to a governmental panel. The Cabinet of Prime Minister Shinzo Abe is expected to adopt the strategy later this month.


The draft says major IT firms, referred to as “platformers” in Japan as they provide digital infrastructure or platforms for the sale of products and services, could disadvantage smaller business partners by unilaterally forcing on them contract terms and rules, and having them shoulder excessive costs.


Bearing in mind U.S. tech giants, including Google LLC, Apple Inc., Facebook Inc. and Inc., collectively known as GAFA, the envisioned legislation will oblige such IT firms to make contract terms public and explain the reasons when they refuse business deals, the draft says.


Besides the regulations on IT firms, the draft growth strategy also calls on companies to hire employees until age 70 as part of efforts to address a serious labor crunch amid Japan’s rapidly graying population.


Many companies in Japan currently set retirement age at 60 but employees are legally allowed to work until 65 if they desire and employers are obliged to rehire them.


The draft strategy presents seven options for companies regarding the employment of seniors, including abolishing the retirement age, lifting it to 70, and providing support for retired employees to find new jobs, start their own businesses or work freelance.


The draft policy package also includes a plan to secure public transportation in depopulated areas amid a lack of taxi drivers, such as expanding ride-sharing services involving private cars that are currently banned in most parts of the country.


It also aims to relax rules on taxi use and enable customers to share taxi rides with strangers, according to the draft.

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