Court dismisses Yamato Transport's complaint against Japan Post

Tokyo District Court on Thursday dismissed a complaint by Yamato Transport Co. aimed at blocking Japan Post’s convenience store-based parcel delivery service.

Yamato Transport claimed Japan Post was blocking fair competition in violation of the Antimonopoly Law by offering excessively cheap rates for its “Yu-Pack” parcel delivery service provided through Lawson Inc. convenience stores.

Presiding Judge Yosuke Ichimura rejected the claim, saying he could not detect any unfair practices as recognized under the law.

Japan Post does not charge unfairly cheap rates for its service or offer unfairly low rent for Lawson stores opening on Japan Post premises, he said.

Yamato claimed Japan Post was stealing business from the private sector by taking advantage of its status as a public enterprise that enjoys special treatment, such as exemption from taxes.

But Ichimura said Japan Post is obligated to operate post offices throughout the country in return for the special treatment.

Despite Japan Post’s convenience store-based service, Yamato continues to enjoy the largest market share, with its revenues and profits remaining on an uptrend, Ichimura said.

In August 2004, Lawson announced its plan to terminate an exclusive parcel delivery service contract with Yamato and start handling Japan Post’s Yu-Pack service.

Lawson requested Yamato enter into a nonexclusive agreement, but Yamato refused. Instead, Yamato began a major newspaper advertising campaign criticizing Japan Post. Yamato launched the suit the following month.

Lawson started offering the Yu-Pack service at its 7,800 outlets in November, following the expiry of its contract with Yamato. The move marked the government corporation’s entry into the convenience store-based parcel delivery business.

Later, other convenience store chains followed suit, boosting the total number of convenience store outlets handling the “Yu-Pack” service to 19,000 in about a year.