Japan’s Antitrust Watchdog to Establish New Unit Targeting Tech Giants

Japan’s Fair Trade Commission (JFTC) is gearing up to establish a new division dedicated to regulating and investigating major tech companies, responding to growing concerns over their influence in the smartphone app market. According to Kyodo, this initiative comes amid accusations that these tech giants, such as Google and Apple, are leveraging their dominant market positions to stifle fair competition.

The new unit within the JFTC is slated to be operational as early as April next year and will be staffed with around 50 officials, as per sources familiar with the matter. This move signals a significant organizational overhaul aimed at enhancing the commission’s ability to scrutinize and address potential anti-competitive practices by these IT behemoths, which control the Android and iOS smartphone operating systems.

In a bid to bolster its regulatory capabilities, the JFTC plans to add 35 new personnel to the existing 14-member team currently tasked with overseeing tech giants. Additionally, the section will be led by a director general-level official, underscoring the importance of this new initiative. The commission is expected to request a budget of 17.4 billion yen (approximately $120 million) for fiscal 2025 to support this expansion—an increase of 43% from the initial fiscal 2024 budget.

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This organizational revamp aligns with Japan’s recent legislative efforts to curb the influence of tech giants. A new law, enacted in June, is designed to prevent these companies from restricting third-party vendors from selling and operating apps on their platforms. This law is expected to come into effect by the end of 2025.

Japan’s move mirrors similar regulatory efforts in other regions. The European Union, for example, introduced new regulations in March to oversee tech giants, employing around 100 personnel for this purpose. Meanwhile, the United Kingdom is also preparing to implement legislation targeting these companies, with plans to allocate approximately 200 staff members to enforce the rules.

Source: Kyodo