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 an informed source on Monday.

Kyodo News Agency quoted the source as saying that Nissan paid about 3 billion yen (20 million US dollars) less to companies when providing their services, violating the Subcontract Act, with the Yokohama-based company admitting it was wrong.

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

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