Regulators Raid Amazon Japan: Accused of Pressuring Sellers to Slash Prices

Japan’s Fair Trade Commission (JFTC) conducted a surprise on-site inspection of Amazon Japan on Tuesday, investigating potential violations of the country’s anti-monopoly laws, according to a government source cited by Reuters.

The local unit of U.S.-based Amazon.com Inc. is suspected of pressuring third-party sellers on its platform to reduce their prices. In exchange, the company is alleged to have offered sellers preferential placement of their products on its e-commerce site, the source explained.

“There is a suspicion that Amazon Japan is forcing sellers to cut prices in an irrational way,” said the anonymous source, who declined to provide further details as no official announcement regarding the inspection has been made.

Amazon Japan has yet to respond to media inquiries, including a request for comment sent via email shortly after news of the inspection emerged.

Read more: European Regulators Target Amazon’s Marketplace Practices

This is not the first time Amazon Japan has faced scrutiny from the JFTC. In March 2018, the regulator conducted a similar raid, accusing the company of requiring suppliers to bear the costs associated with offering discounts on its platform. At the time, Amazon Japan proposed changes to its business practices, which the authorities accepted later that year.

Globally, Amazon has faced mounting regulatory challenges. Just last week, Reuters reported that the European Union is preparing a new antitrust investigation into whether the company gives its own branded products an unfair advantage over competitors on its marketplace. The case would be part of broader efforts under the EU’s recently enacted rules designed to curb the dominance of major tech platforms.

The outcome of the JFTC’s latest probe remains uncertain, but the inspection underscores the increasing scrutiny Amazon faces as regulators worldwide step up their efforts to ensure fair competition in digital marketplaces.

Source: Reuters