(Source : Tech Crunch) Amazon Japan is under investigation by the Japan Fair Trade Commission (JFTC) over suspected violations of the country’s anti-monopoly laws. The JFTC recently conducted an on-site inspection following reports that the e-commerce giant may have pressured vendors to lower prices in exchange for better product placement on its platform.
According to sources cited by Reuters, the investigation centers around Amazon’s “Buy Box” system, which features one seller’s product as the preferred choice on product pages, directing consumer attention to that listing. The system reportedly encourages vendors to offer lower prices compared to competitors in order to be selected for the coveted Buy Box spot. Additionally, sellers may have been incentivized to use Amazon’s own logistics and payment services to qualify for the promotion.
Amazon Japan spokesperson Tomoko Inoue confirmed the company is cooperating with the investigation. “We are cooperating fully with the [Japanese] authorities,” Inoue said in an email to TechCrunch.
Sources indicate that Amazon Japan reportedly pressured sellers to reduce their product prices in return for better visibility on their “Buy Box” feature, which showcases one seller’s item as the top choice on a product page, although no specific price targets were established.
Customers are required to visit different pages to see products from other sellers. Amazon is claimed to have insisted on “competitive pricing” relative to other online marketplaces as a prerequisite for being featured in the Buy Box.
Moreover, sellers were allegedly compelled to utilize Amazon’s own services, including logistics and payment processing, to be eligible for Buy Box promotion. The JFTC suspects that these practices were designed to enhance Amazon Japan’s market position at the cost of sellers’ independence.
The investigation follows similar scrutiny Amazon has faced in other regions. In recent years, the company has been investigated by antitrust regulators in the European Union and the U.K. over its Buy Box practices. In both cases, Amazon avoided penalties by offering commitments to ensure more transparent and non-discriminatory conditions for listing products.
In the U.S., Amazon is also dealing with antitrust actions. In September 2023, the Federal Trade Commission (FTC) and 17 state attorneys general filed a lawsuit accusing Amazon of stifling competition, including manipulating product prices. A trial for this case is set for 2026.
Moreover, Amazon faces the possibility of a new investigation by the EU next year, focused on allegations of giving preferential treatment to its own branded products, which would violate the Digital Markets Act’s ban on self-preferencing.
This is not Amazon Japan’s first run-in with competition authorities. In March 2018, the JFTC raided Amazon Japan over similar concerns regarding supplier practices. Amazon eventually agreed to a plan to improve its business practices.
As the investigation progresses, Amazon’s legal troubles could escalate, with potential fines and stricter regulations looming across multiple markets.
