🔎 Japan investigates Amazon’s pricing tactics
The Japan Fair Trade Commission (JFTC) raided Amazon Japan on November 26, 2024, over alleged anti-monopoly violations. Authorities suspect the company pressured vendors to lower prices in exchange for preferential placement in its Buy Box system. Amazon Japan’s spokesperson, Tomoko Inoue, stated the company is cooperating fully. This comes six years after a similar investigation in 2018, when Amazon pledged to improve its practices after being accused of forcing suppliers to shoulder discount costs.
🌍 Global scrutiny on Amazon’s practices
Amazon has faced comparable antitrust investigations worldwide. In the EU and U.K., the Buy Box system drew regulatory concerns. Both regions settled their probes in 2022 and 2023, respectively, without penalties, as Amazon promised non-discriminatory criteria for product placement. Meanwhile, in the U.S., the Federal Trade Commission filed an antitrust lawsuit in September 2023, claiming Amazon stifled competition and inflated prices, potentially costing households over $1B. The trial is set for October 2026.
🇪🇺 Possible fresh EU investigation looms
Reuters recently reported that EU authorities suspect Amazon of favoring its own branded products on its marketplace, which could breach the Digital Markets Act (DMA). If proven, Amazon risks a fine of up to 10% of its global annual sales. This would be a significant penalty, given Amazon’s history of navigating such accusations — including its victory in a state aid tax case in Luxembourg earlier this year.
📦 Implications for Japan and beyond
The latest raid indicates Japan’s regulators are intensifying scrutiny of tech giants. The JFTC’s actions could lead to stricter regulations for e-commerce platforms in the region. With global regulators increasing pressure on Amazon’s practices, experts believe the outcomes in Japan may set precedents for other markets. Amazon’s ongoing collaborations with authorities will be crucial in shaping its future operations.
Is Amazon’s Buy Box system fair to vendors?
