For Kadokawa, 2025 didn’t end well legally, and 2026 isn’t starting better. The Japan Fair Trade Commission confirmed that the publisher is being investigated for alleged violations of the Freelancer Protection Law, specifically regarding its practices with writers, illustrators, and stylists who worked on magazine production since winter 2024. Kadokawa acknowledged the investigation on June 8 and stated it is cooperating with authorities.

What it’s accused of and why it matters

The core of the accusation is simple but has concrete consequences: Kadokawa allegedly assigned work to freelancers verbally, without documenting the contract terms in writing or specifying clear payment deadlines. This isn’t just an administrative failure. Under Japanese law, when the payment deadline for externally contracted work isn’t explicitly stated in writing, the company must pay on the day the work is delivered. By not documenting anything, Kadokawa allegedly delayed those payments beyond what’s allowed, which constitutes a direct violation of the law. Over 100 freelancers were reportedly affected by this practice.

What worsens the situation is that this isn’t the first time. In 2023, Kadokawa and several of its subsidiaries were already investigated for alleged violations of the Subcontracting Law, in that case for unfairly reducing payment rates for writers and photographers. The commission issued a formal warning the following year. The fact that the same company appears in a similar investigation just two years later raises questions about whether the corrections made were truly sufficient.

In its June 8 statement, Kadokawa acknowledged the investigation and committed to responding sincerely and cooperatively. It indicated it will make additional announcements if matters requiring public disclosure arise. No details have been published yet about the full scope or specific findings of the investigation.

Kadokawa Corporation is one of Japan’s largest entertainment companies, with operations ranging from publishing light novels and manga to producing anime and developing video games through subsidiaries like FromSoftware. Among its most known franchises are Sword Art Online, Re:Zero, KonoSuba, Oshi no Ko, and Elden Ring. Its size and influence within the industry make regulatory investigations involving it especially relevant for Japan’s creative ecosystem as a whole, which includes thousands of independent workers whose working conditions rarely receive the same attention as the productions they help create.

Do you think regulatory investigations are enough to change the practices of a company the size of Kadokawa, or is something more decisive needed to protect independent creative workers?