Steve Stecklow, Aditya Kalra, Jeffrey Dastin
London (Reuters)-Five members of the US House Justice Commission wrote to Amazon.com Inc (NASDAQ :) CEO on Sunday, including founder Jeff Bezos. About Amazon’s business practices that have been accused of misleading Congress or perhaps lying to it.
The letter also states that the Commission is considering “whether it is appropriate to introduce the issue to the Justice Department for investigation.”
A letter to Amazon CEO Andy Jassy follows last week’s Reuters survey, where the company launched a systematic campaign to copy products and rig search results in India to boost sales of its brand. I showed that I did. A longtime Amazon executive, took over Bezos in July.
The letter states that the “trustworthy report” of Reuters’ article and recent articles of several other media outlets is in direct conflict with the testimony and wording of top Amazon executives, including former CEO Jeff Bezos. “.
“At best, this report confirms that Amazon representatives misunderstood the Commission. In the worst case, they may have lied to Congress for possible violations of federal criminal law. Shows, “the letter said. Reuters reviewed a copy of the letter.
In response, an Amazon spokesperson said, “Amazon and its executives did not mislead the Commission. They denied the inaccurate recording of media articles in question and tried to correct it.”
In addition, “As mentioned above, there is an internal policy that goes beyond the policies of other retailers we are aware of, prohibiting the use of individual seller data to develop Amazon Private Label products. Allegations that the policy may have been violated and appropriate measures may have been taken. “
Since 2019, the House Judiciary Committee has been competing in the digital market, including how Amazon uses its own seller data from its platform and whether the company has unfairly endorsed its products. I have been investigating.
Bezos banned the company’s employees from using individual seller data to benefit their branded product lines in a testimony at the Judiciary Commission’s Antitrust Subcommittee last year. Said that. In another 2019 hearing, Amazon’s associate general counsel, Nate Sutton, said the company wouldn’t use such data to create its own branded products or modify search results to make a profit. Witnessed.
When asked if Amazon would change the algorithm to direct consumers to their products at a 2019 parliamentary hearing, Sutton said, “The algorithm is what customers want to buy, regardless of the seller. It’s optimized to predict. “
The lawmaker’s letter gives Jassie a “last chance” to provide evidence to support the company’s previous testimony and statement. “It is criminally illegal to deliberately make false statements, hide material facts, or otherwise provide false documents in response to a parliamentary investigation.” Stated.
Until November 1st, CEOs will be told “How Amazon Uses Private Personal Seller Data to Develop and Sell Your Own Product Lines” and how Amazon’s Search Rankings Support Those Products Provides an oath response for clarification.
We also request a copy of all documents mentioned in the October 13 Reuters survey.
“When taking this opportunity to revise records and refer the issue to the Department of Justice to consider whether it is appropriate to conduct a criminal investigation, give the Commission an oath, truth and accurate answer to this request. It is highly recommended to provide. “The letter states.
Reuters research was based on thousands of pages of internal Amazon documents, including email, strategic documents, and business plans. They have a formal secret policy that Amazon manipulates search results, prioritizing Amazon’s own products, copying other sellers’ products, at least in India, and at least two seniors. Showed that executives have reviewed it.
In response to Reuters’ report, Amazon said, “I believe these claims are virtually incorrect and unfounded.” The company did not elaborate. According to the company, it doesn’t like its own branded products as a way to display search results.
The lawmaker’s letter also cites other recent stories about Amazon’s private-label products and the use of seller data in Markup, The Wall Street Journal, and Capitol Forums.
The sharp wording of the letter ratchets the rhetoric between Washington and Big Tech. Companies, including Amazon, Facebook Inc (NASDAQ :), Apple Inc (NASDAQ :), Alphabet (NASDAQ :) Inc’s Google is in Washington, Europe and elsewhere due to corporate concerns among regulators, legislators and consumer groups. It is being scrutinized more and more. Engaged in unfair practices that hurt a lot of power and other businesses.
The parliamentary letter was signed by a bipartisan group, with Democrat Jerrold Nadler, chair of the Judiciary Committee, and four members of the Anti-Trust Subcommittee (chairman, Democratic David Siciline, and vice-chairman Pramila Jayapal). Jayapal, Republican Ken Bach and Matt Gaetz) were included.
After the announcement of Reuters’ investigation on Wednesday, prominent Amazon critic Elizabeth Warren, a US Democratic senator, called for the company to dissolve. In India, a group representing millions of physical retailers has urged Prime Minister Narendra Modi’s government to take action against Amazon.
Five U.S. lawmakers have accused Amazon of lying to Congress following Reuters reports from Reuters
Source link Five U.S. lawmakers have accused Amazon of lying to Congress following Reuters reports from Reuters