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Japan’s New Fair Trade Chief Commits to Proactive AI Oversight
As the global tech landscape undergoes seismic shifts driven by artificial intelligence (AI), Japan’s Fair Trade Commission (FTC) is stepping up its game. Hiroo Iwanari, the newly appointed Secretary-General of the Japan Fair Trade Commission (JFTC), declared at his inaugural press conference on July 1 that the commission will maintain constant vigilance over the AI market. His message was clear: if any monopolistic practices or antitrust issues emerge, the JFTC will respond swiftly and decisively.
Iwanari’s remarks come in the wake of a mid-year interim report released by the JFTC in June, which examined the evolving structure and competitive environment of the AI sector. While the report did not identify immediate legal violations or dominant-player abuse, it emphasized the necessity of ongoing investigation due to AI’s rapid technological and commercial transformation.
Looking ahead, the JFTC will play a critical role in the enforcement of upcoming laws intended to stimulate fair competition. In December 2025, the Smartphone Software Competition Promotion Act (known informally as the “Smartphone New Law”) is set to take effect, followed by the amended Subcontract Act in January 2026. These legislative efforts aim to prevent large tech firms from exploiting smaller companies and stifling innovation, particularly in Japan’s increasingly digital economy.
Iwanari highlighted the importance of reinforcing the
This commitment to monitoring the AI landscape signals that Japan is not merely playing catch-up with Western regulators, but is actively positioning itself as a proactive force in maintaining digital market fairness.
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By stating that the JFTC will act “immediately” should any antitrust problems arise, Iwanari sends a strong deterrent signal to dominant tech players, both domestic and foreign. This is particularly relevant as global giants like Google, OpenAI, Amazon, and Microsoft continue expanding AI integrations into consumer platforms, creating potential choke points for competition.
The interim
The upcoming legislative measures, such as the Smartphone Software Competition Promotion Act, are especially notable. This law appears designed to prevent ecosystem lock-ins—where dominant players use pre-installed software, app store restrictions, or bundled services to suffocate competitors. Japan’s decision to launch this law ahead of many other nations illustrates a forward-thinking stance.
Moreover, the revised Subcontract Act suggests that Japan recognizes the danger of asymmetrical power between large AI developers and smaller subcontractors, who are often responsible for labeling data, creating training content, or providing integration services. Protecting these subcontractors helps safeguard innovation diversity.
Still, the biggest hurdle might not be legal reform but talent reform. Iwanari’s comment about fostering digital-literate human resources shows an acute awareness that tech regulation is only as strong as the regulators’ technical literacy. AI’s nuances—such as algorithmic bias, data privacy, and model interpretability—require more than legal knowledge; they demand technological fluency.
If Japan successfully scales up its digital regulatory infrastructure while supporting new legislation, it could emerge as a key model for mid-sized economies grappling with AI governance. At a time when many nations are still in the policy-formulation phase, Japan is already outlining an enforcement-first future.
🔍 Fact Checker Results
✅ The JFTC’s interim AI market report was published in June 2025 and found no immediate legal violations.
✅ The Smartphone Software Competition Promotion Act will come into effect in December 2025.
✅ Hiroo Iwanari was appointed as the
📊 Prediction
Expect Japan to gradually become one of the most active antitrust regulators in the Asia-Pacific region when it comes to AI. The combination of new legislation, proactive agency leadership, and digital talent development will likely enable Japan to clamp down on unfair AI practices faster than many Western counterparts. Additionally, we may see ripple effects across the Japanese tech ecosystem, with domestic companies becoming more cautious about their data practices and competitive strategies. Japan’s regulatory assertiveness could even influence regional trade frameworks involving AI ethics and competition law.
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Reported By: xtechnikkeicom_15951e536acfef24bb0cca6f
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