Amazon’s Japan unit has submitted to the country’s antitrust watchdog a set of proposed reforms including returning money to its suppliers after having them shoulder part of the costs to cover discounts the online retailer applied on goods, reported Japan Times.
Should the Japan Fair Trade Commission accept the reforms, Amazon Japan K.K. will be exempted from administrative penalties after it was investigated in 2018 for allegedly violating the nation’s antitrust law.
The law prohibits companies from abusing their superior positions to illicitly earn profits from other parties by making demands, including for money.
The suppliers are thought to have complied with Amazon’s demand to continue selling their products through its wide sales network. The sources said the Japan unit started asking them to shoulder part of the costs around 2017.
Amazon Japan was notified in July that it could give the Commission proposals, including measures to prevent a similar reoccurrence of business misconduct.
“We have no comment. We will continue to cooperate with the Fair Trade Commission,” Amazon Japan said.
This is not the first time Amazon Japan was suspected of being in breach of the country’s antitrust law.
Full Content: Japan Times
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