Japan raids beer giants over alleged price cartel

Authorities in Japan conducted raids on four leading beer manufacturers, including Asahi Breweries, Kirin Brewery, Sapporo Breweries, and Suntory, on Wednesday, according to a source familiar with the matter. The Japan Fair Trade Commission (JFTC) launched the investigation, probing suspicions of price collusion to increase beverage prices, potentially violating anti-monopoly laws. The four companies, which reportedly control around 90% of Japan's beer market, were the first to be investigated by the JFTC in this manner.

According to the source, the price-fixing allegedly took place over the past few years, with representatives from the four companies reportedly meeting periodically to discuss pricing and the timing of price hikes. Over recent years, these firms have raised beer prices multiple times, citing rising costs of raw materials and logistics as justification. Local media reported these price increases.

All four companies confirmed they are under investigation and pledged their intention to fully cooperate with the authorities. Suntory specifically announced that it is undergoing an on-site inspection by the Fair Trade Commission regarding suspected breaches of the anti-monopoly act related to its alcohol trading activities.

The raid comes in the wake of a similar cartel probe by the JFTC earlier this year into the country's six major ice cream firms, which were accused of coordinating price hikes for years beyond what could be justified by a surge in raw ingredient costs.