A panel of Japan's governing Liberal Democratic Party has compiled proposals urging the government to set rules for IT giants to ensure transparency in handling personal data and contracts with client firms.
Huge IT companies such as Google, Apple, Facebook and Amazon, collectively known as GAFA, have faced criticism for collecting large amounts of customer data that they use to safeguard their market dominance.
The panel interviewed officials from such firms before drawing up the proposals.
The proposals call on the government to consider a new law that requires the firms to give advance notice before revising contracts, to prevent their clients from being harmed by one-sided contract changes.
Panel members also called for drawing up new anti-monopoly law guidelines that apply specifically to IT giants to ensure fair competition.
They also suggest that a panel of experts be established within the government to get an accurate picture of IT giants.
The panel plans to meet on Thursday to formally approve the proposals.