Investing.com-- Japan's Fair Trade Commission (JFTC) has conducted an on-site inspection of Amazon (NASDAQ:AMZN) Japan, probing allegations of potential violations of the country’s anti-monopoly laws, Reuters reported on Tuesday citing a government source.
The investigation centers around claims that the e-commerce giant has been pressuring third-party sellers to lower their prices in exchange for preferential product placement on its platform.
There is suspicion Amazon Japan has been forcing sellers into reducing prices in a manner that is "irrational" and potentially harmful to competition, Reuters reported. However, no official statement has been released by the JFTC regarding the nature or extent of the inspection.
This marks the latest in a series of scrutiny Amazon has faced over its business practices in multiple regions. Just last week, reports indicated that the European Union is preparing for a potential investigation into whether Amazon favors its own branded products over those of third-party sellers in its online marketplace.
This investigation would fall under new EU antitrust regulations, which are designed to address concerns about fair competition in digital markets.
The JFTC’s inspection is not the first time Amazon Japan has been under investigation. In March 2018, the regulator raided Amazon Japan over similar concerns, accusing the company of pressuring suppliers to bear part of the cost of discounting their products on the site. In response, Amazon Japan proposed a series of business practice reforms, which were accepted by the authorities later that year.
With the growing global focus on the business practices of tech giants like Amazon, this investigation highlights the increasing scrutiny of large online platforms and their impact on competition and market fairness, both in Japan and internationally.
Japan's Nikkei newspaper had initially reported the JFTC investigation, citing a government source.
The outcome of the JFTC's inspection, along with the ongoing EU investigation, could have significant implications for Amazon's operations and its relationship with sellers on its platform, the reports mentioned.