Japan's Fair Trade Commission applied the Antimonopoly Act's commitment procedure to Amazon Japan on the 11th, over a Featured Offer system that sellers say effectively forced them to price below their lowest offer.
The commitment procedure lets a company under investigation avoid a formal ruling by proposing its own remedies. Amazon Japan will change how the system works, according to reports.
Amazon Japan runs the country's largest online marketplace. The Featured Offer — the buy box many shoppers use when choosing a product — decides which seller's listing is put forward on a product page.
Sellers said the system effectively steered them to sell below their lowest price. The commission examined whether that amounted to forcing them to cut prices.
The case turns on the leverage a dominant platform holds over the small businesses that depend on it for sales. Sellers on the site have little room to refuse terms set by the marketplace.