Big Tech May Be Required to Disclose Algorithms

A significant legal ruling in Japan could compel major technology companies to reveal the workings of their algorithms. Recently, a court in Tokyo ruled in favor of Hanryumura, a barbecue restaurant chain, in an antitrust lawsuit against Kakaku.com, which operates Tabelog—Japan’s largest restaurant review platform.

Hanryumura alleged that Kakaku modified the methodology for calculating user ratings in a manner detrimental to their business. As a result, the restaurant chain was awarded $284,000 in damages; however, the most noteworthy aspect of the case was the court’s unprecedented request for Kakaku to disclose elements of its algorithms. This is a historic move, as no digital platform has been ordered to reveal algorithmic details in an antitrust context before.

Although Hanryumura is prohibited from sharing the algorithmic information it received, this case challenges the long-held stance of technology companies asserting that their algorithms should remain trade secrets. The establishment of this precedent suggests that similar cases may soon emerge, potentially prompting regulators to insist on greater transparency from large tech firms, particularly concerning algorithms that significantly influence individuals’ lives.

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