Tokyo Threatens To Fine Facebook, Twitter, Google And Tech Companies For Not Opening Offices In Japan

JAKARTA - The Japanese government will impose fines on 48 technology companies including Twitter, owner of Facebook, Meta Platforms and Alphabet's Google Inc for failing to register their headquarters in the country. The report first appeared in the Nikkei newspaper on Monday, June 20.

In early June, Japan's Ministry of Justice reiterated its request that several social media companies register their global headquarters in Japan by June 13. The ministry said it would ask the court to fine the companies if they still had no intention of registering.

If an IT company has its headquarters registered in Japan, it's easier for consumers to file lawsuits when issues, such as defamation on social media sites, occur. The Japanese government believes proper registration is essential to protecting consumers.

Japanese company regulations do require overseas companies that do business in the country on an ongoing basis to register their head office in Japan.

Overseas IT companies object by defending the argument that they provide their services via the internet and do not continue to grow their business by establishing a base in Japan.

These companies also seem to insist that they are confident enough to register their Japan-based units, such as those that handle marketing operations. However, the Japanese government has been known to be strict with its rules, so fines are likely to be imposed.