Japan’s new data protection law brings opportunities

Japan recently amended its data privacy law to allow greater access to so-called “big data”. A wide range of industries including retail, technology, communications and consumer goods are increasingly relying on big data to boost their business performance.

As a result of the amendment, both domestic and foreign companies now have more opportunities than ever to tap into the lucrative Japanese economy, the third-largest in the world. With the amendment, Japan also hopes that the EU will formally recognize Japan as providing adequate data protection, thereby allowing significantly freer cross-border data transfers between Japan and EU countries.

BIG DATA

Big data refers to large quantities of structured or unstructured information that organizations can analyze for potential gains. Perhaps the most obvious benefit of using big data is greater sales. However, companies also rely on big data to increase customer satisfaction, implement more targeted marketing strategies, come up with new and innovative services, and reduce costs. Before the amendment, it was unclear how extensively Japanese privacy laws allowed the sharing of big data, leading many to err on the side of caution and refuse to disclose any big data to third parties.

DARCY KISHIDA is an attorney at Kojima Law Offices, the Japan member of Meritas Law Firms Worldwide