Japan’s Regulatory Response to Digital Platforms

Comparisons with European and Asian Approaches

Abstract

In response to the ever greater role of platforms in the digital economy, the Japanese government decided to introduce "business rules" concerning digital platforms in its Growth Strategy 2018. The motivation appears similar to what is driving the European Union to propose a regulation governing contracts between platforms and business users, as well as governing consumers’ rights against platforms. After deliberations within the government, however, Japan has chosen to pursue a different path. It has decided to employ primarily the Antimonopoly Act to regulate the relationship between platform operators and retailers (business users), and to monitor how well the voluntary arrangements work in protecting consumers' interests vis-à-vis platforms. The approach of Japan also differs significantly from neighbouring economies in Asia, namely the Republic of Korea, where the consumers' interests are addressed by a statute, and the PR China, where regulation over digital platforms has recently been introduced as part of its E-commerce Law. While Japan's choice is apparently influenced by the interests of its digital platform operators and the sharing economy sector of the industry, underlying thoughts about private law – such as the tendency to avoid policy considerations in contract law rules and a flexible use of the good faith principle – also seem to be relevant.