For legal professionals working within top corporations and law firms, it’s crucial to keep an eye on legal happenings beyond our own borders. A clear example of this is how the General Data Protection Regulation (GDPR) from Europe had significant repercussions for American companies in 2018. These foreign laws forced many organizations to adhere to new, stricter privacy standards.
Moving our gaze eastward, Japan’s legal system gives us another venue to watch, especially for those working in Apple’s antitrust department. Japan is enhancing its antitrust regulations, aiming to curtail monopolistic practices among its major corporations. This move draws inspiration from the recent mandate of the European Commission, which directed Apple to permit third-party app stores on its iOS platform. Now, Japan has turned its sights towards this tech giant, indicating a wider crackdown on any hint of anticompetitive behavior. (Pymnts.com)
Furthermore, the Japanese law imposes significant penalties for monopolistic practices. Companies found culpable are currently hit with fines up to 6% of their sales. However, policymakers are proposing an impressive increase in these penalties. The new regulations suggest fines of 20% of sales for initial violations and up to 30% for repeated non-compliance. Given these steep penalties, companies will likely be quick to fall in line with the new regulations.
From a broader perspective, this effort by Japan to counter anticompetitive practices could signal the entrance of new players in the tech sphere if successful, both in Japan and here at home. In related news, the Department of Justice recently hit Apple with an antitrust lawsuit.