Amazon Japan Draws Up Improvement Plan after FTC Raid

Politics

Tokyo, Sept. 4 (Jiji Press)--E-commerce giant Amazon Japan G.K. has submitted a business improvement plan to Japan's Fair Trade Commission after it was raided by the antitrust watchdog for unfairly requesting payments from suppliers of goods it sells, it was learned Friday.

The improvement plan includes refunds of such money, informed sources said.

The submission was made under a system the FTC introduced in December 2018, in which businesses engaged in practices allegedly violating the antimonopoly law voluntarily present improvement plans. Such companies would be exempted from administrative penalties, such as a fine, if the plans are approved by the commission.

The Japanese unit of Amazon.com Inc. of the United States had allegedly requested product suppliers to make unfair "cooperation money" payments to the company from several years ago, the sources said.

They were urged to shoulder part of the costs of discount sales Amazon Japan made on its website, the sources said. Other questionable practices included requesting money from suppliers whose goods did not meet a profit target set by Amazon Japan.

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Jiji Press