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Japan: Amazon drops ebook price clause due to antitrust scrutiny

By  |  August 16, 2017

A group company within Amazon Japan G.K. has removed a contract clause requiring publishers to market ebooks on Amazon’s website at the lowest price when selling the same products on rival sites, the Japan Fair Trade Commission (JFTC) said Tuesday.

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    According to the JFTC, Amazon Services International has revoked the clause requiring that terms match those made with rivals like Rakuten and Apple.

    The anti-monopoly watchdog has been concerned that the clause may undermine fair competition and hinder companies from cutting prices and improving services.

    Earlier this year, the Japanese unit of Amazon.com removed a “most favored nation” (MFN) clause, a similar contract provision it concluded with product sellers using the Amazon Marketplace online platform, after on-site inspections by the JFTC.

    Amazon’s MFN clause for e-book retailers was also seen as problematic in Europe. In May, the company agreed with the European Commission to take measures to improve the situation.

    Full Content: Law 360 & Mainichi

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