Japan Fair Trade Commission Preparing for More Proactive Enforcement

Our Tokyo team prepared this memo on recent actions taken by Japan’s Fair Trade Commission (JFTC).

Executive Summary

• The Japan Fair Trade Commission (JFTC) has been actively enhancing its capabilities to investigate the competitive environment in the tech sector of Japan’s economy.
• JFTC has proposed significant budget and personnel increases for the next fiscal year, and it intends to strengthen its already-close coordinate with EU and U.S. regulators.
• More specifically, JFTC is considering a fact-finding investigation into competition issues within the generative artificial intelligence (AI) market, and competitive issues related to businesses utilizing generative AI may emerge in society.
• JFTC efforts are also likely to accelerate when the Act on Promotion of Competition for Specified Smartphone Software will come into effect by the end of 2025.
• While big tech firms comprise the primary targets of these laws and of potential JFTC actions, players throughout the generative AI, online service and smartphone software ecosystems can anticipate implications.
• APCO recommends multinational firms monitoring EU and U.S. regulators should also carefully assess their competitive environment in Japan and more closely follow JFTC’s movements to avoid the risk of new/expanding regulations and reputational damage.

Download the full memo here or read below:

Photo: Japanese Fair Trade Commission