Regulation of Digital Platforms and the Digital Economy in Japan

Abstract

Abstract The digital economy continues to evolve in Japan and around the world. Big data and personal information have significant economic value and require appropriate legal protection for both information providers and users. Digital platforms, as online intermediaries, occupy a particularly important position in relation to the handling of such information. While digital platforms can greatly benefit society by accumulating and structuring large amounts of data from diverse markets, they can also be prone to the lock-in effect, resulting in monopolies or oligopolies due to network effects. Therefore, digital platforms can have a detrimental effect on individuals and society if they do not operate appropriately. Potential issues include a lack of transparency and fairness of transactions, distribution of infringing content, and the mishandling of data and personal information. Policymakers across the globe recognize these issues, and various regulatory measures have been proposed and implemented. In this paper, we outline how Japan regulates issues related to digital platforms and the digital economy, and highlight some nuances of the Japanese law by comparing it with corresponding European systems.