Will 'Digital Regulation' Be Included in Japan-US Mutual Regulation... Attention Focused on USTR
U.S. Industry in Japan Submits Statement Listing Six Trade Barriers Including Big Tech Regulations
Implementation of Japan's Digital Regulations May Be Delayed Until 2025
The United States Trade Representative (USTR) gathered industry opinions ahead of the implementation of the U.S. reciprocal tariff policy on the 2nd of next month, and it is reported that American companies expressed concerns about Japan's digital regulations.
On the 18th, Japan's Nihon Keizai Shimbun (Nikkei) reported that the American Chamber of Commerce in Japan (ACCJ) listed six ongoing trade barriers in Japan in a statement submitted to the USTR. These include ▲automobile safety standards, ▲pharmaceutical pricing systems, ▲cloud service government procurement safety standards, ▲cosmetics advertising regulations, ▲customs procedure privileges for Japan Post's parcel delivery, and ▲U.S. Big Tech regulations.
The second Trump administration plans to finalize reciprocal tariff details by considering not only the tariff rates of counterpart countries but also the negative impacts of non-tariff barriers. The USTR is investigating non-tariff barriers in various countries and received submissions from industries and organizations by the 11th.
A newly discussed issue is Japan's regulation of Big Tech companies. The ACCJ submitted an opinion to the USTR stating that Japan's "Smartphone Software Competition Promotion Act (Smartphone New Act)" targets American companies. This law was enacted to prevent monopolies by large IT companies in the smartphone market and aims to strengthen regulations by addressing the dominant positions held by Apple, Google, and others in application (app) distribution and payment systems.
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Nikkei explained that the USTR is likely to reflect opinions from groups like the ACCJ in tariff policies due to chronic labor shortages. The Japanese government planned to implement the Smartphone New Act by 2025, but if the USTR applies pressure on Japan by incorporating U.S. industry opinions, the implementation schedule may be delayed.
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