Japan approves Amazon plan to end vendor discount requirement

Japan's Fair Trade Commission approved Amazon Japan's reform plan on Wednesday after investigating its pricing practices.

The watchdog examined allegations that the retailer required vendors to offer prices no higher than those on rival online shopping sites to receive prominent placement.

Amazon Japan will no longer require vendors to match rival prices for that placement.

It also plans to make products easier to find, giving preference to the cheapest price on its own site.

The case matters because the requirements could affect how vendors price their goods and which products shoppers see first.

Under Japan's commitment procedure, the plan means Amazon Japan avoids an antitrust violation accusation and orders to fix the issue.

The company is to follow the approved plan, while Amazon.com faces separate product-display allegations in the United States and Europe and is fighting them in court.