On Monday, officials from Japan’s antitrust authority raided the offices of e-commerce giant Rakuten Inc following complains from online merchants regarding the company’s free shipping policies
With the news reaching the market, its shares fell briefly by 3%.
Rakuten’s spokeswoman confirmed the raid and stated the company was cooperating with the investigation.
Online merchants have complained that Rakuten was abusing its dominant position and pressurising them to shoulder shipping costs.
In an effort to fight Amazon.com, Rakuten plans on making shipping free for orders above $36.26 (3,980 yen) starting from March 18.