Japan: Published METI recommendations to Amazon, Apple and iTunes based on Act on Improving Transparency and Fairness of Digital Platforms

On 2 August 2024, the Ministry of Economy, Trade, and Industry (METI) published recommendations to Amazon, Apple and iTunes based on the Act on Improving Transparency and Fairness of Digital Platforms. In particular, these recommendations address the disclosure of terms and conditions. The METI report highlighted that, in regard to Amazon, sellers were not clearly informed that selected product types or browse nodes might differ from fee categories, nor was it clear that Amazon Japan determines the fee categories. Although clarifications were made to help pages, there were instances where prior notifications of fee changes and their reasons were lacking. Amazon Japan has introduced a monitoring system to notify fee changes 90 days in advance but must ensure clear communication. Furthermore, there were instances between 31 March 2023 and 7 May 2024 where changes to fee categories were not disclosed in advance. Concerning Apple and iTunes, METI noted that they did not consistently accompany terms of service with Japanese translations or specify deadlines for translation from March 2021 to December 2023. Starting in January 2024, Apple included a note in notifications that translations would be available within one month, but some translations were not provided by the deadline. The recommendations for Amazon Japan include clearly disclosing fee terms, providing advance notice and reasons for fee changes, ensuring executive confirmation of compliance measures, informing all relevant parties, and reporting compliance status every three months for one year. For Apple, the recommendations are to establish an internal compliance system for term disclosures, inform employees, and report the implementation status in Japanese within three months. Both companies are required to improve transparency and compliance with the regulations to ensure fair practices in their digital platforms.