Abstract
Abstract This study attempts to organize the regulatory perspective on the interaction between information law and competition law, especially for platform businesses. An online platform is an entity that mediates multiple groups of users, such as providers and users of products, services, and information, and has an indirect network effect as a two-sided market. The study illustrates the actions taken by online platforms, indicates attendant problems, and suggests responses to these. Four aspects of the competition policy issues related to online platforms are analyzed and discussed: data collection, data enclosure, data acquisition, and algorithmic transparency. The study considers essential online platform issues, such as promoting competition policy and fairness in information law application, to expand the discussion. Although fairness is important, there is a risk that the analysis of the effects of reducing competition is neglected and that interpreting fairness might increase the concern regarding over-execution. Having disaggregated the elements of fairness, the study suggests the need to establish specific standards.
Highlights
In Japan, the core of competition law is the “Anti-monopoly Law” (Act on Prohibition of Private Monopolization and Maintenance of Fair Trade [Act No 54 of 1947]), which regulates acts that have an anti-competitive effect
This study attempts to organize the regulatory perspective on the interaction between information law and competition law, especially for platform businesses
One purpose of this study is to review the relationship between the competition law and the laws and regulations governing the private sector considering the Japan Fair Trade Commission (JFTC) publication of the “Guidelines Concerning Abuse of a Superior Bargaining Position in Transactions between Online platform Operators and Consumers that Provide Personal Information, etc.1”
Summary
In Japan, the core of competition law is the “Anti-monopoly Law” (Act on Prohibition of Private Monopolization and Maintenance of Fair Trade [Act No 54 of 1947]), which regulates acts that have an anti-competitive effect. The most problematic issue in information distribution is the market dominance of online platforms, and any consideration of competition law enforcement must first be based on a proper economic understanding of the competitive situation. A typical example is where an Internet search service platform provides free search summaries to consumers and sells advertising space on the search service’s website to advertisers at a fee Concerning these two-sided markets, there are various theoretical investigations and various empirical analyses in economics, such as index creation. It is believed that the framework of an online platform, with information law providing appropriate institutional support for the production and distribution of information, and competition law preventing the formation, maintenance, and strengthening of market dominance, is a sufficient condition for securing the right incentives for growth and fulfilling expectations.
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