Six Japanese ice cream makers raided in price fix probe

Officials from the Japanese government’s fair trade watchdog raided six major ice cream producers on suspicion of price fixing.

Tokyo-based Meiji Co said in a statement that it was raided on suspicion of violating anti-monopoly laws.

“We sincerely accept the fact that our company was raided and we promise to fully cooperate with the Japan Fair Trade Commission investigation,” the statement said.

Five other companies, namely Morinaga Milk Industry Co, Morinaga & Co, Lotte Co, Ezaki Glico Co and Akagi Nyugo Co, also made similar statements.

It is not yet clear when the raids took place.

In addition to ice cream, the companies also produce a variety of food items, desserts and confectionery products, such as pudding, chocolate and chewing gum, which are widely sold in supermarkets and grocery stores across the country.

Japanese media described this as a “price cartel”.

The reports said the companies’ senior executives had been in contact with each other for several years to coordinate, for example, the raising of ice cream prices by 10 yen (nine Australian cents) and the timing of such increases.

Japanese antitrust authorities periodically conduct high-profile raids to preserve fair competition, as has happened with Google, instructing it to fix ad search restrictions in the country that allegedly affected Yahoo.

They were also involved in a 2022 investigation with prosecutors from major advertising company Dentsu as part of a widespread investigation into corruption related to the 2020 Tokyo Olympic Games.

In the last case, the commission did not comment.

But it seems to be part of his routine to inspect ice cream makers for potential price violations.

On the commission’s website, complete with colorful manga-like illustrations, is an example of an ice cream maker refusing to distribute product to retailers unless a certain suggested price was agreed upon.