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Japan's antitrust watchdog conducted an on-site investigation of the Japanese unit of Amazon.com Inc. on Tuesday for allegedly forcing retailers to cut prices of products sold on its online shopping website, sources close to the matter said.
Amazon Japan G.K. is alleged to have violated the antimonopoly law by forcing retailers to reduce prices in return for displaying their products in the most visible positions for users of its platform, with the involvement of its U.S. headquarters also suspected.
The move comes as U.S. and European antitrust authorities are reported to have ramped up their probes into the tech giant over suspicions of pressuring third-party sellers inappropriately by taking advantage of its dominant position.
The Amazon e-commerce site has a "marketplace" for outside retailers to sell their products in addition to selling its own goods. Vendors recommended by Amazon will be displayed in the designated area, which can be easily found by users.
Amazon requires retailers who wish to appear in the area to "sell products at competitive prices," and is suspected of threatening to withdraw their products if they refuse to lower prices below those of rival online shopping platforms, the sources said.
The Japan Fair Trade Commission considers such acts as breaching the antimonopoly law prohibiting companies from abusing their power based on their dominant bargaining position and conducting transactions with restrictive terms.
The watchdog is expected to seek information from retailers about their transactions with Amazon in the near future, the sources said.
Amazon Japan was also probed by the watchdog for violating the antitrust law in 2016 and 2018.
© KYODO
8 Comments
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kohakuebisu
Amazon also bumps up the prices of some goods. Anyone using the platform has to charge a high enough margin to cover Amazon's take. Amazon will force them to use the same prices on other platforms so that Amazon is not undercut.
wallace
Had a very recent experience for the first time. Ordered a shirt for about ¥4,000. When it arrived it was the wrong size. Got in touch with Amazon to make a return. It was accepted. Then I discovered the Chinese seller charged me a "restocking fee" equal to the full price of the shirt. I would have been happy to pay ¥1,000 but not full price. I could have kept the shirt and gifted someone. Watch out for returning items and restocking charges.
Wasabi
wallace == You should be able to send a claim to Amazon about this. They made the mistake in the first place. Maybe ask for a full refund.
wallace
Wasabi
I tried and contacted Amazon but basically, it's up to the seller. You can many of these cases online these days. When buying especially clothes check the return policy. In 15 years first time problem.
リッチ
Japanese marketing media on tv and newspapers and magazines won’t even run commercial ads without some “campaign chu” part in it. Whats the difference.
wallace
Some Amazon sellers are sending low-quality items and when returned charging a restocking fee.
Gaijinjland
In principle, as a customer, I don’t care that Amazon strong arms retailers into lowering their prices since they automatically charge me 600 yen a month anyway for their Prime service. Never had to pay anything for returns and was always 100% reimbursed.
wallace
Gaijinjland
Same experience for me for 15 years until two recent ones. The events I have posted can be found online which I didn't know until I went to look.