Apple Abuses Market Dominance In Japan, Investigated By Japan Authorities

Over the last few years, Apple has been facing continuous scrutinies and allegations regarding its violation against antimonopoly rules. As reported earlier this month, the company is currently under an investigation over its abuse of market dominance in Japan. The examination, conducted by the Fair Trade Commission (FTC), follows some testimonies that Apple is pressurizing its Japanese suppliers.

The interpretation of FTC’s survey

FTC has carried out a survey of Apple as part of the investigation, which shows that the company is forcing its suppliers to furnish free technology, as well as know-how in exchange for parts manufacturing.

Also, using its dominant position in the industry, Apple requires some manufacturers to lower parts prices, while inhibiting them from selling products to other firms. Sources say Apple doesn’t take any responsibility for the costs of unforeseen issues, but its partners do.

There’s an incidence that Apple threatened to dissolve the business relationship with a company as it accused the tech giant of infringing the intellectual property rights. However, it’s just one case among numerous business relationships of Apple in Japan including contracts with firms that provide first-party Apple Watch bands and most of its iPhone components.

Previous investigation targeting Apple

Last year, Apple is suspicious of having breached antitrust rules to sell iPhones in Japan. In the meantime, FTC executed an investigation over accusations that the company was unfairly pressurizing Yahoo Japan Corp to quash the expansion of the new online games platform which might negatively influence the operation of Apple’s App Store.

In the U.S, Apple is facing allegations over its App Store policies. As said, the terms and conditions offered by App Store grant the company too much power on app sales and in-app purchases.