October 2, 2024
Japan Fair Trade Commission
Requests for Information and Comments Concerning Generative AI and Competition
Today, while wearing a hoodie designed and created by the staff of the Office of Policy Planning and Research for Digital Markets, I would like to explain the launch of the market study on generative AI.
In recent years, the technology of Generative AI has been rapidly developing, and the market continues to expand and grow. While further development is expected as Generative AI brings various benefits to the economy and society, it is considered that some business activities related to Generative AI may affect competition.
For these reasons, the JFTC decided to launch a study to understand the current conditions of the markets related to generative AI, including domestic and international trends, while also taking into accounts the perspective of implementing generative AI in a healthy and sustainable manner within the economic and social framework. Considering the rapidly changing and fast-growing nature of the markets related to generative AI, the study differs from the traditional methods of market studies conducted by the JFTC. To begin, we publish a discussion paper today titled “Generative AI and Competition” and start soliciting information and comments.
In this discussion paper, the market structure of generative AI-related markets is organized into three layers: infrastructure, model, and application. The JFTC summarized the current status of each layer based on the facts, reflecting its present understanding of the generative AI-related markets. Additionally, the discussion paper presents potential issues related to the Antimonopoly Act and competition policy based on these facts. However, these issues are organized solely for the purpose of contributing to future discussions and are not intended to suggest any current problems.
This discussion paper is published on the JFTC’s website, and we solicit information and comments by asking respondents to answer the questions provided under each section of the paper. Information and comments can be submitted via email or postal mail. The submission period will run for approximately one and a half months, from today until Friday, November 22. We hope to receive a wide range of input from various sources, including businesses involved with generative AI, business associations, individuals with expertise in generative AI, and other relevant parties.
The JFTC will analyze the submitted comments and information. At the same time, we plan to advance our study of the generative AI-related markets by conducting hearings with relevant ministries, overseas authorities, as well as domestic and international businesses and experts.
In light of the fluid state of generative AI markets where information is being updated daily, the JFTC will punctually sort relevant information from various stakeholders and proceed with the market study in an agile, prompt, and flexible manner, presenting its views on generative AI issues from the Antimonopoly Act and competition policy perspectives as necessary.
(Tentative translation)