Forced merchants to return points to Japan's Amazon was investigated by antitrust regulators - Nigeria 24 hours news update
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Forced merchants to return points to Japan's Amazon was investigated by antitrust regulators

Japan’s antitrust regulator’s Fair Trade Commission is scheduled to investigate Amazon Japan on the 27th to confirm whether a new service on the e-commerce platform violates antitrust laws.

  Including Amazon, the Fair Trade Commission will increase its supervision of US Internet giants such as Google and Apple in Japan.

[eyeing on points]

  Amazon Japan Branch will set all the products on the website as the return points from May 23, that is, consumers can earn points when they purchase any products on the Amazon website in Japan.

  Japanese Amazon website points can be used directly for consumption. Depending on the membership level, consumers can get 1% to 2.5% of the price of the item for each purchase, and 1 point deducts 1 yen.

  Prior to the launch of the new service, only Amazon’s proprietary products would return points. After May 23, Amazon Japan requires all suppliers to return points to consumers. The points are borne by the supplier.

  According to the Japanese Amazon website, the new policy will help improve shopping convenience and expand supplier sales.

  Kyodo News reported that Amazon Japan Branch unilaterally notified suppliers of new point return policies, and SMEs and individual suppliers did not have the opportunity to negotiate with Amazon.

[Strictly prevent monopoly]

  The Fair Trade Commission confirmed on the 26th that it will investigate the trading situation of the Amazon website in Japan, focusing on whether the mandatory return of points violates the anti-monopoly law.

  Amazon Japan did not respond to the investigation.

  Internet giants such as Amazon, Apple, and Google have a huge market share in Japan. The Ministry of Economy, Trade and Industry's survey of SMEs found that some platforms have unilaterally changed trading conditions, forcing suppliers to accept unfair transactions.

  In January this year, the Fair Trade Commission collected information on the suspected monopoly of the platform from users such as Amazon and Google. It is scheduled to ask the relevant enterprises from the 27th and request a reply. If the company does not cooperate, this regulator can initiate a “mandatory investigation”.

  Kyodo News reported that the Fair Trade Commission’s investigation was unusual.

  Japanese Minister of Economy, Trade and Industry Shigeng Hiroyuki told reporters on the 26th: "If (Amazon) has unilaterally changed the contract by using the dominant position of the industry and forced the supplier to bear excessive burdens, it will be a major problem." 

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