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The Japan News/Yomiuri
The Japan News/Yomiuri
Business
The Yomiuri Shimbun

Antitrust watchdog seeks court order to block Rakuten's free delivery plan

Rakuten Chairman and President Hiroshi Mikitani speaks at a press conference in Tokyo on Feb. 13. (Credit: The Yomiuri Shimbun)

The Fair Trade Commission is seeking, under the Antimonopoly Law, an emergency court order to block Rakuten Inc.'s plan for free delivery of purchases over a certain amount on its online shopping site.

The move on Friday is the first time since June 2004 that the antitrust watchdog has made a filing with the Tokyo District Court seeking such an order.

Rakuten, which operates a cybermall, announced in August 2019 its plan for tenants to bear the delivery costs of any purchases of 3,980 yen or more, except for delivery to certain distant areas of the nation. In December, Rakuten notified the tenants that it will implement the plan on March 18.

On Feb. 10, the FTC searched Rakuten's headquarters in Tokyo, suspecting that Rakuten is abusing its superior bargaining position over the tenants, putting the tenants in a disadvantageous position, in violation of the Antimonopoly Law.

Hiroshi Mikitani, Rakuten's chairman and president, said at a press conference in Tokyo on Feb. 13 that the company will implement the plan as scheduled, describing the service as shipping fee included rather than free shipping.

The FTC filed the latest order after it decided that such a distinction makes virtually no difference.

Read more from The Japan News at https://japannews.yomiuri.co.jp/

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