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Serious allegations: KADOKAWA in the sights of the competition authority


KADOKAWA is once again in the focus of the Japanese competition authority: The media group is threatened with an official warning due to possible violations of the freelancer law. We summarize.

Serious allegations

According to a report by Yomiuri Shimbun, the Japan Fair Trade Commission (JFTC) plans to issue an official reprimand against KADOKAWA. The company is accused of violating the freelancer law, which has been in force since November 2024, when it commissioned around 100 freelance authors, illustrators and designers.

Specifically, KADOKAWA is said to have sometimes only awarded orders orally for various magazine projects. As a result, the relevant agreements lacked, among other things, a clear regulation on the time of payment.

However, according to the current law, clients must provide binding information on remuneration and payment deadlines. If there is no such agreement, payment is generally due upon delivery of the work.

Not the first incident

According to the report, several freelancers received their compensation late. Meanwhile, KADOKAWA confirmed that it was aware of the authorities’ investigations and was helping to clarify them.

This is not the first incident of this kind for KADOKAWA. The group and its subsidiary KADOKAWA LifeDesign were warned by the JFTC in November 2024 for violations of the subcontractor law at the time.

The new freelancer law is intended to improve the working conditions of self-employed people in Japan. Companies and clients are therefore obliged, among other things, to define contract contents in a clear and comprehensible manner.

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Via Yomiuri Shimbun
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