Japanese authorities raid Amazon offices due to anti-monopoly violation
Date
11/28/2024 7:41:22 AM
(MENAFN) Japanese authorities raided Amazon Japan's offices on Tuesday, investigating allegations of anti-monopoly law violations. The Japan Fair Trade Commission (JFTC) suspects the e-commerce giant of exploiting its dominant market position to pressure sellers into lowering prices, thereby gaining an unfair competitive advantage. This marks the third such investigation into Amazon Japan over alleged domineering practices.
The investigation centers on Amazon's "buy box," a highly sought-after feature on its platform that prominently displays selected products, significantly boosting their sales. Sellers reportedly face intense competition to secure this spot, as failing to do so can severely impact their revenues. According to sources, sellers were compelled to lower prices to maintain access to the buy box, thereby giving Amazon a competitive edge over rival platforms.
In addition to pricing pressures, Amazon is accused of forcing sellers to use its in-house logistics services, including packing, order processing, and shipping, to secure the buy box. These practices, described as "abuse of a dominant position" and "transactions with binding conditions," are prohibited under Japan’s anti-monopoly laws, raising concerns about fair competition in the e-commerce market.
Amazon Japan has stated its willingness to cooperate fully with the JFTC’s investigation. The case highlights the growing scrutiny of major tech companies in Japan and globally, as regulators seek to curb anti-competitive practices and ensure fair market dynamics for smaller businesses and consumers.
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