Tokyo, Japan – Japan's Fair Trade Commission (JFTC) has launched a fresh investigation into Amazon Japan, conducting on-site inspections at the e-commerce giant's offices on Thursday. The probe centers around allegations of antitrust violations, specifically claims that Amazon has pressured its marketplace sellers to lower their prices unfairly.
The JFTC suspects that Amazon has been demanding third-party sellers on its marketplace to offer products at prices lower than those on competing platforms. Such demands, the JFTC argues, constitute unfair trade practices prohibited under Japan's Antimonopoly Act.
This marks the third time since 2016 that the JFTC has investigated Amazon Japan. In this latest investigation, the commission plans to expand its probe to Amazon.com, the U.S. parent company, by requesting the submission of documents. The move comes amid a broader crackdown by the Japanese government on tech giants, including the imposition of a fine on Google's U.S. parent company in April.
According to the JFTC, Amazon has been requiring third-party sellers to continuously monitor prices on competing online shopping malls and large electronics retailers, and to sell their products at lower prices. Sellers who refused to comply were allegedly removed from Amazon's recommended product lists, significantly reducing their sales opportunities. These practices are believed to have been ongoing for several years.
The JFTC has concluded that these actions constitute abuse of a dominant position and imposition of unfair trade conditions, both of which are prohibited under antitrust law.
In previous investigations, the JFTC has found Amazon Japan to have exerted undue pressure on both third-party sellers on its online sales platform and direct sellers of its own products. Following each investigation, Amazon has taken measures to improve its trading conditions.
In 2016, the JFTC conducted an on-site inspection over allegations that Amazon Japan was pressuring third-party sellers on its online sales platform to offer product lineups and prices that were more favorable or equal to those of competitors. Amazon subsequently removed contractual clauses requiring preferential treatment for third-party sellers, and the JFTC closed the case in 2017 after determining that Amazon had voluntarily ceased its illegal activities.
However, allegations resurfaced in 2020 that Amazon Japan had been unfairly collecting "cooperation fees" amounting to up to 10% of the transaction price from suppliers. As a result, Amazon Japan received a cease-and-desist order and was ordered to pay approximately 2 billion yen in compensation to around 1,400 affected businesses.
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