Amazon Japan Suspected of Forcing Retailers to Cut Product Prices
Amazon Japan, the Japanese unit of Amazon.com Inc., is being investigated by Japan’s antitrust watchdog for allegedly forcing retailers to cut the prices of products sold on its online shopping website. The company is suspected of breaching the antimonopoly law by pressuring retailers to reduce prices in return for displaying their products in a prominent position on the platform.
According to sources close to the matter, Amazon Japan is allegedly forcing retailers to sell products at competitive prices, threatening to withdraw their products if they refuse to lower prices below those of rival online shopping platforms. This practice is considered a violation of the antimonopoly law, which prohibits companies from abusing their dominant position and conducting transactions with restrictive terms.
The Japan Fair Trade Commission is expected to seek information from retailers about their transactions with Amazon in the near future. This probe is not a new development, as Amazon Japan was previously probed by the watchdog in 2016 and 2018 for similar allegations.
The move comes as U.S. and European antitrust authorities are intensifying their probes into Amazon’s business practices, amid suspicions of pressuring third-party sellers inappropriately. The company’s dominant position in the e-commerce market has raised concerns about its ability to influence the prices of products sold on its platform.
The Amazon e-commerce site has a “marketplace” for outside retailers to sell their products, with a designated area for recommended vendors. However, the company’s alleged practice of forcing retailers to cut prices has raised concerns about its impact on the competitive landscape of the Japanese e-commerce market.