News Japan Fair Trade Commission launches probe into '1 yen' smartphones

[thomas]

Japan's anti-trust watchdog, the FTC, has launched a rare inspection on cellphone distributors selling smartphones for as low as 1 JPY to find out how such sales practices are possible and determine whether there are cases of dumping or abuse of dominant bargaining position by major mobile carriers against distributors to achieve their targets.

The FTC has ordered distributors that had sold smartphones for less than 1,000 JPY to report the details of their transactions with carriers by Nov. 2, according to the sources. Those who do not agree to the inspection or who make false reports are subject to fines. The regulator plans to draw up a report as early as this year. Selling smartphones at extremely low prices is widely seen as being linked to carriers imposing high targets for mobile contracts on distributors. The FTC is looking into how such a discount is financially possible, suspecting it has caused inequalities among customers.

Japan's fair trade watchdog launches probe into '1 yen' smartphones - The Mainichi

TOKYO (Kyodo) -- Japan's anti-trust watchdog has launched a rare compulsory inspection on cellphone distributors selling smartphones for as low as 1 y

mainichi.jp

In August, the FTC investigated the "Big Four", NTT Docomo, KDDI, SoftBank and Rakuten Mobile, and their outlets, to see if such practices had led to dumping.

In reality, however, mobile carrier outlets, engaged in increasingly fierce price competitions, are offering price cuts of well over ¥20,000 by also applying their own discounts. The FTC believes the sales practice of offering ¥1 handsets "is feared to be leading to dumping." Resellers who sell handsets procured at bargain prices have been causing such problems as supply shortages of popular smartphone models. Observers say that low-cost smartphone carriers providing services by borrowing major carriers' networks are in disadvantageous positions in competitions as they find it hard to secure funds for offering major discounts.

Fair Trade Commission to probe Japanese mobile carriers over '¥1 smartphone'

Subject to the investigation are the country's four major mobile phone carriers — NTT Docomo, KDDI, SoftBank and Rakuten Mobile — and their outlets.

www.japantimes.co.jp