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Japanese mobile carriers warned not to offer predatory discounts for smartphones

( February 24, 2023, 08:21 GMT | Official Statement) -- MLex Summary: Japan’s main mobile carriers, NTT Docomo, KDDI, and SoftBank, were warned by the competition regulator against offering excessive discounts of smartphones to their sales agents, which then sell smartphone devices as low as 1 yen (below $0.01)to the consumers. The Japan Fair Trade Commission said that selling smartphone handsets below cost to their sales agents, and giving them incentives to offer extreme discounts to consumers could be regarded as unjust pricing, in violation of the Antimonopoly Act. The carriers could also face another antitrust issue of abuse of superior-bargaining power if they force their sales agents to shoulder financial burdens too heavy to  make profits, the JFTC said in its latest mobile-phone survey. The watchdog urged the carriers not to impose targets that would induce predatory discounts, and to listen to the agents in setting their targets. The report on the survey and its summary, in Japanese, are attached....

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