 "This isn’t the first time Amazon has faced such scrutiny. The company has been under the lens of regulators worldwide for its business practices. In the US, the Federal Trade Commission and the Attorney General of Washington DC have raised similar concerns Image credit: Reuters")
Amazon Japan has come under scrutiny as Japan’s Fair Trade Commission (FTC) launched a surprise raid on the e-commerce giant’s local office.
The raid is part of an investigation into allegations of antitrust practices, with regulators looking into claims that Amazon is pressuring sellers to cut prices unfairly and steering customers toward preferred products through its platform.
According to several news reports coming out of Japan, the Japanese FTC suspects that Amazon Japan is coercing sellers into lowering their prices to gain better visibility in search results.
Allegations of unfair pricing and practices
A particular focus of the inquiry is Amazon’s Buy Box program, a feature that highlights recommended items prominently on its site. Sellers vying for this coveted placement are allegedly required not only to offer “competitive pricing” but also to use Amazon’s in-house logistics and payment services.
While the FTC has yet to make an official statement, sources suggest the investigation aims to determine whether these practices amount to an abuse of market dominance. Amazon Japan, for its part, has confirmed its full cooperation with the authorities but has not disclosed further details about the allegations.
A global pattern of antitrust investigations
This isn’t the first time Amazon has faced such scrutiny. The company has been under the lens of regulators worldwide for its business practices. In the US, the Federal Trade Commission and the Attorney General of Washington DC have raised similar concerns, probing Amazon’s influence over pricing and its potential to stifle competition.
Looking ahead, the company is also set to face an antitrust investigation in the European Union, with regulators there examining whether its practices harm sellers and consumers. These global probes underscore a growing trend of regulatory bodies taking a closer look at how tech giants operate in increasingly competitive markets.
Implications for Amazon and sellers
The investigation in Japan could have significant repercussions for Amazon’s operations in one of its key international markets. If found guilty of antitrust violations, the company might face penalties or be forced to change its business model in the country. For sellers, the inquiry raises questions about the fairness of Amazon’s marketplace policies, particularly the balance of power between the platform and its users.
As the investigation unfolds, Amazon’s compliance with regulators will likely shape the next steps in this case and influence how similar inquiries are handled in other parts of the world. For now, all eyes are on Japan’s FTC as it delves deeper into Amazon’s practices.