Amazon Japan Raided For Antitrust Violations, "Cooperation Payments"

There was a time when the phrase "cooperation payments" evoked images of burly, muscle-bound goons, walking around town, sometimes armed with a baseball bat but usually relying only on their reputation of being able to extract cold hard cash from local merchants in exchange for "protection". This morning in Japan, it appears nothing has changed.

According to Japanese press this morning, Amazon Japan is being investigated by the country's antitrust regulator on allegations of asking vendors for a percentage of their sales revenue.

As the Nikkei reports, the Japanese arm of the U.S. e-commerce giant whose name had already appeared increasingly in discussions of market monopolies and anti-trust violations, began requesting its vendors contribute "cooperation payments" from around 2017, claiming that the contributions would be used for system upgrades and other improvements. The requested payments ranged from a few percent to well over 10% of sales prices. The company is also alleged to have requested vendors help absorb the costs of discounting goods.

Surprisingly, Nikkei adds that Amazon Japan has been struggling with rising shipping and other operational costs.

What is more notable, however, is that in its first direct encounter with the monopoly busters, the Japan Fair Trade Commission conducted an on-site investigation at Amazon Japan's office on Thursday on suspected violation of the Antitrust law.

The watchdog suspects the company of using its dominant position in the country's e-commerce market to pressure suppliers, making it virtually impossible to refuse the request.

The regulator intends to clarify the details of the payment procedures, while Amazon Japan said on Thursday that it is "fully cooperating" with the investigation.

In February, Nikkei reported that Amazon Japan was seeking payments from its suppliers to cover the cost of sales system upgrades and other expenses. Amazon is reportedly already using a similar system in the U.S.

Amazon Japan has previously been the subject of investigations surrounding the so-called most-favored nation clause, which required vendors on its website to offer the same or better prices and product lineups than what they offer on rival marketplaces. The regulator closed the investigation in June 2017 after Amazon Japan agreed to delete the clause.

Meanwhile, there was no indication that the US version of Amazon was in anti-trust regulators' crosshairs. Yet.

Comments

spieslikeus Thu, 03/15/2018 - 06:37 Permalink

Must be a response to the fact I’ve been spending less on stuff for when TSHTF. ‘Prepping ain’t easy but it’s necessary’. Let’s see if someone gets that reference!

new game Thu, 03/15/2018 - 06:42 Permalink

sounds like credit cards and digital money, because we can, we gave to the right people(politicians) and you are just some slob that is gonna pay. welcome to fascism, when corruption is joined at the hip by contributions to corrupt fukers above the law. speaking of the law, jeffy - anyone home? dirt bag fuk...

Roger Ramjet Thu, 03/15/2018 - 06:46 Permalink

Why would AMZN, which arguably has the lowest cost of capital of all companies in the NASDAQ, need to shake down its vendors for "system upgrades"?  Honestly Bezos, if you need cash, issue some equity as your shares are trading at 300x earnings!

Hillarys Server Roger Ramjet Thu, 03/15/2018 - 07:17 Permalink

Doesn't Amazon US provide cloud storage or something to the CIA.

No need to enforce fees for small vendors.

Just ask the CIA to kill the uncooperative vendors off.

The CIA can kill them with Russian nerve agent if it has any left over.

It's win win.

And mix in just a small dash of chocolate bubblegum flavored bone marrow DNA male vitality brain force into the Russian nerve agent and take down Alex Jones too. A twofer!

In reply to by Roger Ramjet

WTFUD Thu, 03/15/2018 - 06:50 Permalink

Extortion's such an ugly word and mutually beneficial cooperation might be a better expression.

As soon as Amazon are in a position to offer me a good deal/discount on an ounce of weed and an 1/8th of blow per month then they can count me out as a customer.

Drone it to me MAN!

Arnold Thu, 03/15/2018 - 06:54 Permalink

Japan needs a cash infusion.
Same shakedown as the EU.

Not that the FAANGs don't deserve a clubbing, but recognize it for what it is.

GooseShtepping Moron Thu, 03/15/2018 - 06:55 Permalink

Of course this would be the case. How could anyone think otherwise?

If you remember the "bust-out" scene from Goodfellas, then you have all the insight you need to understand Jeff Bezos' entire business model. Amazon takes over a business or an industry, sells everything under cost in order to generate quick revenue for itself, and then liquidates it. It is nothing but destructive cannibalism and the strip-mining of productive society.

Amazon has never generated a real, organic, legitimate profit in its entire corporate history. And it never well, because fundamentally it cannot do so. On any type of honest accounting, its business model is fundamentally flawed. How can it be cheaper to ship individual items 10,000 miles directly to someone's door than it is to ship them in bulk to a local retailer? It can't be; it only works in the short term because Amazon forces society as a whole to bear the extra costs.

It is time for US regulators to step up and put a stake through Bezos' heart. This piece of shit will go down in history with John Corzine and Bernie Madoff as one of the arch-swindlers of our age.

analyser Thu, 03/15/2018 - 07:12 Permalink

Short Amazon in Trumpdepression. In deflation , amazons weak margins will get hit. Currently the highly profitable AWS division is subsidizing the lossmaking package business. Higher sales, higher losses and this before the big deflation. The stock is worth 0 if we get 30 percent deflation

www.canarydeath.com

gregga777 Thu, 03/15/2018 - 07:19 Permalink

I'm thrilled to live in the United States where the Public Enemy (PE) mafia organizations can do a Legal Bust Out (LBO) so that they can make payments on their $50 million mansions, $100 million yachts and $ million super cars. 

Tom Green Swedish Thu, 03/15/2018 - 07:26 Permalink

I am unaware how Amazon makes money. Everytime I go there I buy from a reseller because they are typically cheaper. I think it has something to do with them getting items on sale then holding them after the sale and manipulatig the price. Easy in practice really if you buy from slickdeals and just jack the deals To me this wouldnt be any more useful thsn ebay. In fact I could have went to ebay. What is the difference exactly? They charge less than ebay to resellers? Or are they making money of kindle and echo dots?

helloimjohnnycat Tom Green Swedish Thu, 03/15/2018 - 07:56 Permalink

It should be obvious...

The goal of Amazon is not to make money.

The goal is to control & capture the flow of goods.

The profit is within the joo-wrought payment system.

Duh !

The funding needed to build mega fulfillment centers comes from thin air.

And what tribe of parasites is behind the ploy ?

Yep, joos.

Keep shopping Amazon as their world turns against America.

Never forget : joo kikes are inside-out niggers.

In reply to by Tom Green Swedish

Let it Go Thu, 03/15/2018 - 07:41 Permalink

Amazon is not our friend and of that, we should take note. While I'm fully aware of the argument that only through creative destruction can we progress and make progress Amazon is predatory. Not only does Amazon often fail to have the best price or service but buying from the company carries the hidden cost of destroying businesses rooted in our communities. The article below explores Amazon's strategy of "Engulf and Devour"

 http://Amazons Engulf And Devour Strategy.html

archie bird Thu, 03/15/2018 - 07:54 Permalink

Cooperaton payments? Really? Sounds kinda like the mafia shaking down local business owners, "Gee, it would be ashame if 'something' should happen to your estblishment. Thats why you need insurance..."