Japan tech companies scramble to comply with EU cybersecurity laws

NEC, Mitsubishi Electric risk fines or loss of market access

20241203N EU cybersecurity

New European Union cybersecurity rules will increase the burden on companies, including ones based outside the bloc. © Reuters

ATSUSHI TERAOKA, Nikkei staff writer

TOKYO -- Japanese tech companies like NEC and Mitsubishi Electric are struggling to keep up with cybersecurity regulations being enacted in the European Union, putting themselves at risk of being excluded from the market or hit with heavy fines.

The EU's Cyber Resilience Act takes effect this month, designed to prevent products that fail to meet certain safety requirements from entering the European market. The act applies to Internet of Things (IoT) products and requires companies to consider cyber risks from the development stage.

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