Ending Soon! Save 33% on All Access

New Enforcement in Japan Has Become a Big Hurdle for these two Global Giants Here's why regulations have been changed in Japan and what is causing a trouble to global companies

By Komal Nathani

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.


Two San Francisco-based tech giants Airbnb and Uber are reportedly stuck amid tough regulations in the world's third largest economy Japan. While the travel online marketplace Airbnb has scrapped its hotel bookings in Japan, Uber has reduced its food delivering due to the enforcement of "New Minpaku Law" in the country on June 15. The law states that the hosts (outstation companies) must have a permanent reporting number.

Under the existing laws, Airbnb had to cancel its thousands of listings and bookings done from June 15 to June 19, which didn't meet the requirements. "This stinks -- and that's an understatement," fumed Airbnb in a report by AFP.

On the other hand, UberEats who made its entry into Japan in 2016 reduced its food delivery services effective from June 15. The ride-hailing company Uber has been a hit in Tokyo since the time it has arrived. Due to new regulations restaurants listed under UberEats had to bear the brunt.

Apparently, the new regulations have brought many outstation companies at standstill in Japan. Here's why regulations have been changed in Japan and what is causing a trouble to global companies.

About New Regulations in Japan

Japan introduced the 'New Minpaku Law' on June 15 which states companies must have a reporting number. The number must be on the listing and at the entrance to the property.

The outstation companies must have a business permit number. According to the officials, tourists staying in lodgings that break the rules won't be arrested or fined. But there are risks such as being asked to leave the premises or encountering resistance from neighbours.

After years of gloom, Japan has revived its economy in the East Asian market. The existing laws in effect would restrict the market, which at this point in time would not work in country's favor.

According to the former officials, the loosen laws will be a welcoming step for Japan to have an access to sharing economies. With more millennials getting involved in business, there is a great evolution in Japan's economy in itself. The next generation in business is showing "greater interest" in shared economies, which would eventually help in growing cross-border trader without any major restrictions.

Komal Nathani

Former Correspondent, Entrepreneur Asia Pacific

A firm believer of hard work and patience. Love to cover stories that hold a potential to change the momentum of business world. Currently, a part of all-women web team of Entrepreneur’s Asia Pacific edition to jig the wheel of business journalism!

Thought Leaders

Tony Robbins Reveals the Key to Making Coaching Work For You

No matter what industry, behind most successful entrepreneurs is at least one supportive figure in the form of a coach or mentor who pushed them to their limits.


A 5-Step Business Approach to Dating

This effective marketing strategy will help you find your next romantic relationship.


Why Entrepreneur Stands Against the PRO Act

The Protecting the Right to Organize Act could do lasting harm to the small-business and franchise community.


COVID-19 Transforms Out-Of-Home Advertising

Economic crisis and pandemics like these breed incredible opportunities and this is one such opportunity for the OOH advertising industry to relearn and transform.

Business News

TikTok Reportedly Laid Off a 'Large Percentage' of Employees as the App's Fate in the U.S. Remains Unclear

Laid-off TikTok employees were notified Wednesday night through Thursday morning.


Women Franchise Owners Fear the PRO Act

Franchising helped them become small business owners, and they don't want to be forced back under the corporate thumb.