Tokyo: Japan is investigating six ice cream companies for colluding to raise prices. Japanese authorities raided the headquarters of six major ice cream manufacturers amid allegations of colluding to unfairly restrict competition and fix retail prices for ice cream in the country.
According to Thai News Agency, the Japan Fair Trade Commission (JFTC) raided the headquarters of six major ice cream manufacturers: Meiji Co., Morinaga Milk Industry Co., Lotte Co., Ezaki Glico Co., Morinaga and Co., and Akagi Nyugyo Co. This followed intelligence suggesting these large Japanese ice cream companies were involved in an illegal cartel agreement to manipulate the wholesale and retail prices of their ice cream products, including popular varieties sold in convenience stores and supermarkets both domestically and internationally.
Officials discovered that senior executives of each company had been communicating via email and holding meetings for years to coordinate the timing and scale of price increases for ice cream and other frozen desserts. Since 2022, these companies have gradually raised retail prices in several waves, averaging 5-10% or about 10 yen per increase. Despite recent inflation and soaring raw material costs, Japanese regulators are investigating whether the brands exploited these circumstances to raise prices beyond actual costs in order to maximize their own profits. The predetermined recommended retail price impacted the wholesale prices sold to supermarkets and convenience stores nationwide, ultimately burdening consumers.
Recently, five out of six companies have issued statements confirming that official inspections of their offices have taken place and that they are fully cooperating with the authorities. If found guilty under antitrust laws, the JFTC will issue orders to improve business practices and impose substantial fines.
This case marks the first time in Japanese history that a raid has been conducted on a price-monopolizing scheme in the ice cream industry. It occurred during the country's ice cream market's sixth consecutive year of record growth, reaching a total value of over 663 billion yen (approximately US$4 billion), driven by Japan's unusually hot summers, which increased demand for ice cream.