Japan's antitrust watchdog plans to warn major automaker Nissan Motor Co. for unilaterally reducing payments to over 30 subcontractors, a source familiar with the matter said Monday.
Nissan allegedly underpaid the companies by some 3 billion yen ($20 million) upon delivery of their services, in violation of the subcontract law, the source said, with the Yokohama-based company admitting it was in the wrong.
The Japan Fair Trade Commission plans to issue an advisory to prevent a repeat of the situation, the source said.
The subcontract law prohibits companies from unilaterally deducting payments to subcontractors once they have been agreed upon, except for instances in which the subcontractors failed to meet their obligations.
