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2/26, 7:32 AM (Source: TeleTrader)
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Japan competition commission to probe Amazon

Japan's Fair Trade Commission may launch an investigation into Amazon Japan's loyalty program to determine if one of the online retailer's policies is in breach of antitrust laws, the Nikkei Asian Review reported on Tuesday.

The tech giant's Japanese division told third-party sellers over the weekend that it will modify its points system in late May to make them responsible for covering the cost in future. The company justified the move by saying that it would lead to better sales opportunities for sellers.

However, a source at the commission said that changing contracts without outlining the direct benefits to the sellers could constitute an abuse of Amazon Japan's dominant position and that it could thus launch an investigation. The commission previously investigated Amazon along with other companies such as Google and Facebook to determine if the companies were using their market dominance to block competition in the country.

Breaking the News / DZ