Amazon Japan Raided over Suspected Unfair Practice
Tokyo, March 15 (Jiji Press)—Japan's Fair Trade Commission raided Amazon Japan G.K. on Thursday on suspicion of unfairly requesting payments from business partners in violation of the antimonopoly law.
The Tokyo-based unit of US e-commerce giant Amazon.com Inc. is suspected of making vendors, including food and household goods makers, shoulder the costs of discount sales Amazon Japan made on its website.
Amazon Japan allegedly engaged in the practice from several years ago by taking advantage of its superior bargaining position.
Some of the suppliers are believed to have accepted the request and paid the costs.
The FTC apparently views the requests as illegal under the law, which prohibits companies from putting business partners at a disadvantage in a way considered unjust in light of normal commercial practices, by using their strong bargaining position.
[Copyright The Jiji Press, Ltd.]