Amazon Japan Faces Antitrust Probe Over Alleged Price Coercion and "Buy Box" Manipulation
1min read According to sources, the Japan Fair Trade Commission (JFTC) conducted an on-site inspection at Amazon Japan on Tuesday, following allegations of antitrust law violations. The company is suspected of improperly pressuring sellers on its e-commerce platform to lower prices in exchange for better visibility of their products on the site.
The undisclosed government source suggests that Amazon Japan might be coercing sellers to reduce their prices irrationally. This action is believed to attract scrutiny as it potentially constitutes "abuse of superior bargaining position" and "restrictive trading conditions" under the Anti-Monopoly Act.
The JFTC plans to extend its investigation to Amazon's operations in the United States and intends to issue formal inquiries or orders to gather more information as needed. The commission is also aiming to collect insights from a broad range of sellers and other stakeholders to understand the full scope of the alleged practices.
It has been noted that when multiple sellers offer the same product on Amazon, only one version is prominently displayed in the "Buy Box," which allows consumers to easily make a purchase. Other similar listings are only shown as recommendations. The JFTC suspects that Amazon might be using this feature to force sellers to lower their prices below those of other e-commerce platforms and to use Amazon’s additional services such as logistics and payment collection in exchange for a more favorable position.
Sellers and distributors have reportedly been informed that if their prices do not meet these requirements, they risk being removed from the "Buy Box," a critical exposure tool for many sellers. This has implications not only for Amazon's retail platform but also raises awareness among competitors such as Rakuten and Yahoo, who are reportedly aware of these ongoing practices.
