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Japan raids ice cream giants over price-fixing allegations

Japan raids ice cream giants over price-fixing allegations

Summary

Japan's competition authority raided six major ice cream companies for allegedly working together to raise ice cream prices unfairly. The companies are suspected of increasing prices by 5-10% several times, despite rising raw material costs, during a record-breaking hot summer in Japan.

Key Facts

  • The Japan Fair Trade Commission (JFTC) conducted inspections of six ice cream makers, including Meiji, Ezaki Glico, Morinaga Milk Industry, Lotte, Morinaga, and Akagi Nyugyo.
  • The companies are suspected of forming a cartel to fix ice cream prices, raising them beyond normal cost increases.
  • These price hikes allegedly happened multiple times over the years, with increases between 5% and 10%.
  • The ice cream brands sell their products wholesale to supermarkets and convenience stores across Japan.
  • Meiji, Glico, and Morinaga Milk Industry confirmed the inspections and said they will cooperate with the investigation.
  • Japan recently introduced a new term for days reaching 40°C (104°F) or higher, reflecting the extreme heat this summer.
  • The investigation comes as Japan experiences record summer temperatures, increasing demand for frozen desserts.
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