Amazon’s Japan Unit To Return $18M to Suppliers, After Antitrust Probe

Japan’s Fair Trade Commission (JFTC) announced on Thursday, September 10, it has accepted Amazon Japan’s plan to improve business practices suspected of violating antitrust rules, reported the Japan Times

The unit of Amazon was raided by the JFTC in 2018 on suspicion the company demanded that suppliers should shoulder part of the cost incurred from selling their products at a discount on the e-commerce company’s website. 

Amazon Japan’s plan includes the return of 2 billion yen (US$18.85 million) to about 1,400 vendors, the regulator stated.

According to the Commission, Amazon Japan forced suppliers in 10 industries, including electronic goods and pet items, to shoulder part of the cost to cover discounts the online retailer applied on products.

In addition, the Japan unit requested suppliers to pay fees for system usage and marketing costs that amounted to up to 10% of their delivery prices, without giving detailed reasoning behind the demands.

Full Content: Japan Times

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