Supermarket 'Kamashin' Warned for Suspected Violation of Antitrust Law: Free Delivery from Suppliers
Kamashin, a supermarket chain in Tochigi Prefecture, has been warned by the Japan Fair Trade Commission for suspected violations of the antitrust law by forcing suppliers to deliver products for free under the guise of 'open sponsorship.'
Kamashin, a supermarket chain operating 22 stores primarily in Tochigi Prefecture, is facing scrutiny from the Japan Fair Trade Commission (JFTC) over allegations of antitrust law violations. The JFTC issued a warning on December 5, 2023, regarding Kamashin's practices of obtaining free deliveries from suppliers, framed as 'open sponsorship,' that took place from at least March 2022 to December 2025. Approximately 40 suppliers were compelled to provide products at half price or free, leading to a profit margin of around 17 million yen for the supermarket. Additionally, around 10,000 employees from about 60 suppliers were made to perform unpaid labor, assisting with new store openings, renovations, and shelf restocking.
The JFTC's announcement highlights the coercive environment faced by these smaller suppliers, who reportedly feared losing future orders or having their order volumes decreased if they refused to comply with Kamashin's requests. Many suppliers expressed that the pressure to contribute would result in retaliation in their business relationships, reflecting deeper systemic issues within the industry where such practices have been considered customary.
The case underscores the JFTC's increasing vigilance in monitoring monopolistic practices even in local settings, where suppliers may lack the bargaining power to dispute such undue pressures. As the commission intensifies scrutiny, there is growing concern about the long-term implications for fair trade in the retail sector, particularly in how larger businesses interact with their suppliers, potentially reshaping industry norms and promoting healthier business practices.