Thirty years ago the "Japan Inc." partnership between government and industry created an economic powerhouse. Today, those same players are actively blocking innovators in Japan from creating similar success in the fast-growing, new digital economy.
According to allegations in a case to be decided March 30, 2010 by the Tokyo District Court, government bureaucrats have engaged in seemingly corrupt practices to keep up-and-coming ecommerce companies from challenging fossilized brick-and-mortar incumbents.
In June 2009, Japan's Ministry of Health, Labor & Welfare imposed new regulations on the sale of non-prescription pharmaceutical products commonly known as "Over-The-Counter" products. (In Japan OTC are those products needing no prescription such as mild pain relievers, cold remedies and items like pregnancy tests). The suit by Kenko.com and Wellnet Corp., two Japanese online drugstores, alleges that Health ministry bureaucrats colluded with brick-and-mortar chain drug stores to ban online sales of OTC products.
To read the full, original article click on this link: David Meerman Scott: Japanese Bureaucrats Crush Digital Economy Innovators
Author: David Meerman
Scott
