IHUK selling items for markup + British VAT is one thing. Having a global monopoly such that even sales by stores in the U.S. are handled through them and incorporate that cost is another still.
I don’t give Iron Heart Japan a pass for it to be clear. I don't see them as passive in giving Giles his monopoly.
As far as I understand, Giles and Haraki quickly went beyond producers and distibutor to become partners. From a business perspective it is certainly better for them. They have better control of their brand and can avoid their image being diluted by the decisions of others.
For the customer, it means higher prices, but also means centralised customer service, and a really good one at that.
I am not sure what is wrong in Haraki giving the overseas market to Giles?