Japan’s Competition Regulators Raid Amazon Japan, Sources Confirm
1. J. FTC's Investigation into Amazon Japan
Wal-Mart Stores: Japan’s Fair Trade Commission (JFTC) raided Amazon Japan’s offices on charges of anti-competitive practices on Tuesday, sources said. The raid is taking place as a result of an investigation into several claims suggesting that Amazon Japan forced certain terms of business on suppliers that may have breached antitrust regulations in the country.
2. Whistleblower claims of unfair practices
Whistleblowers said the investigation is based on complaints that Amazon Japan sought unfair treatment from sellers, such as preferred pricing and special supplies of products. If proven, such practices would distort fair competition and affect many SBEs competing in a very competitive Japanese e-commerce market.
3. Increased Scrutiny of E-Commerce Giants
The JFTC has been gradually increasing attempts to investigate large-scale online marketplace platforms, particularly those foreign-leading giants, such as Amazon, to check their compliance with Japanese severe antitrust laws. This raid is an indicator of increased vigilance by the commission on digital marketplaces.
4. Amazon's Cautious Response
Amazon Japan cautiously replied to the accusations, saying that they are “fully cooperating with the authorities and will follow the law strictly." The company did not want to go into details of the investigation that happened to them.
5. Global Context: Pressure on Big Tech
This development comes as governments across the globe place pressure on the tech titans in pursuit of equal market competition. Japan has targeted large companies such as Apple and Google in recent years, which can be seen as the beginning of a campaign to curtail Big Tech even more vigorously in its markets.