Japan’s Fair Trade Commission (JFTC) carried out an on-site inspection of Amazon Japan on Tuesday, investigating potential violations of anti-monopoly laws. According to a government source, the e-commerce giant is suspected of pressuring sellers to reduce their prices in exchange for favorable product placement on its platform.
The source, who requested anonymity due to the absence of an official announcement, stated, “There is a suspicion that Amazon Japan is forcing sellers to cut prices in an irrational way.” This action, if proven, could signify a breach of fair trade practices under Japanese law.
Allegations of Unfair Practices
The investigation focuses on allegations that Amazon Japan’s practices may harm competition by creating an uneven playing field for sellers. By tying advantageous product placement to lower prices, the company could be engaging in behavior that unfairly manipulates the marketplace.
Amazon Japan has not yet responded to requests for comment regarding the raid.
This isn’t the first time the JFTC has scrutinized Amazon Japan. In 2018, the regulator raided the company over claims it required suppliers to bear part of the costs for discounting products on its platform. At the time, Amazon Japan proposed changes to its business practices, which the JFTC accepted later that year.
Broader Regulatory Pressure
The investigation comes as Amazon faces increased global regulatory scrutiny. Last week, reports surfaced that European antitrust regulators are preparing a case against Amazon for allegedly favoring its private-label products over third-party sellers on its marketplace. The European Union’s investigation is expected to escalate under newly enacted competition rules.
This latest raid underscores growing concerns among competition authorities worldwide about the potential misuse of market power by dominant tech platforms.
Featured image courtesy of The Japan Times
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