The Japan Fair Trade Commission intends to issue a warning to Nissan Motor Company for unilaterally reducing payments to more than 30 subcontractors, according to a source familiar with the matter on Monday.

The Japanese Kyodo News Agency quoted the source as saying that Nissan paid lower amounts to companies worth about 3 billion yen (20 million US dollars) when providing its services, in violation of the Subcontract Act, with the Yokohama-based company admitting that it was wrong.

The source added that the Japan Fair Trade Commission intends to issue a warning to prevent the situation from recurring.

It is noted that Japan's Subcontract Act prohibits companies from unilaterally deducting payments to subcontractors once agreed upon, except in cases where the subcontractors fail to fulfill their obligations.