Japan: Forcing 24H c-store services may violate antimonopoly law

If the convenience store operator unilaterally refuses a franchise store's request for a review of 24 hours services and puts the shop at a disadvantage as a result, reports Nippon.com.

Unilaterally forcing around-the-clock operations at franchise convenience stores may constitute a breach of the antimonopoly law, indicated in press conference the secretary-general of the Japan Fair Trade Commission, Akinori Yamada.

Convenience stores in Japan are mostly franchise outlets open around-the-clock. However, operators may be more careful and flexible after Yamada’s remarks, industry watchers argued.

The antimonopoly law prevents big players from abusing their dominant bargaining position in the market and from damaging smaller business partners.

According to the commission, franchise stores which find difficulties securing employees for continuing round the clock services or face drop in incomes due to labor costs may submit a request to operators for a review of its franchise activities.