Amazon’s Japan offices raided by nation’s watchdog

The Japanese Fair Trade Commission (JFTC) has raided Amazon’s (NASDAQ: AMZN) Japanese headquarters in Tokyo due to suspicions of anti-trust violations.

Japan’s trade watchdog is investigating Amazon Japan after allegations that the company asked their suppliers to shoulder some of the costs of discounting products on the website.

Japan’s antitrust law means that firms in a superior bargaining position cannot abuse smaller companies to accept unprofitable trade conditions.

It is not the first time the retail giant has been investigated for anti-trust breaches, however, the Japanese Fair Trade Commission has said Amazon is “fully cooperating”.

According to reports, the group is forcing sellers to offer “the lowest price and the richest lineup of goods” on the online marketplace.

Back in 2016, the watchdog raided the Japanese HQ on suspicions that the company had forced retailers to set prices on Amazon Japan lower than prices for the same products listed on other retail sites. Amazon agreed to end the practice.

The newest breach of trust was reported by local media, the Asahi Shimbun daily. Using unnamed sources, the paper reported that Amazon told its suppliers that it threatened to stop working with them if they did not pay the “collaboration” fees.

Both Amazon and the JFTC have declined to comment, however, the retail group has said: “We will fully cooperate with the commission’s inspection.”

Japan is an important location for the retail giant, the country accounted for $11.9 billion of the firm’s $178 billion in global sales in 2017. Japan in the third-biggest market for the group after the US and Germany.

Germany, Japan, and the United Kingdom account for 85 percent of international sales, despite the company operating in as many as 12 key markets.