A new law to urge Giant IT companies to make their trade transparent was passed at a plenary session of the House of Councillors on Wednesday and enacted. Under the law, companies will disclose rules such as condition of use or terms to business contacts, including suppliers for internet shopping sites. They will also be obliged to report the situations of trading once a year to the government. The new regulation will be enforced by next spring.
The law aims to secure fair trade on online shopping sites and smartphone application stores, where limited operators maintain major control. The subject is expected to include U.S. firms Google, Apple Inc, and Amazon.com, Inc., and Japanese companies Rakuten Inc. and Yahoo Japan Corp.
If a company's efforts are not enough, the name of the company will be revealed to urge correction. Furthermore, the Fair Trade Commission will act under the presumption that there has been a violation of the Antimonopoly Law if the case is particuraly serious.
The government plans to revise the scope of the subject fields in around three years. "[The law is] significant for preventing violation," secretary general Shuichi Sugahisa said at a press conference on the same day.
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