Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Amazon com : Lawmakers give Amazon 'final chance' to clear up testimony

10/18/2021 | 02:50pm EST

WASHINGTON (AP) — House lawmakers are threatening to seek a criminal investigation of Amazon, saying the tech giant has a “final chance” to correct its executives' previous testimony on its competition practices.

The lawmakers sent a letter Monday to Amazon President and CEO Andy Jassy saying they were giving the company until Nov. 1 to “correct the record" and provide new documents and evidence. The missive marks an escalation in the bipartisan battle against Amazon by the House Judiciary Committee panel that has investigated the market dominance of Big Tech.

The letter says the antitrust subcommittee is considering referring the case to the Justice Department for criminal investigation. It accuses the world's biggest online retailer of at least misleading Congress and possibly outright lying.

It cites recent media reports detailing Amazon's alleged practice of undercutting the businesses that sell on its platform by making “knock-offs,” or very similar products, and boosting their presence on the site.

The reports directly contradict the sworn testimony of Amazon executives and other statements to Congress, the letter says. It was signed by Judiciary Committee Chairman Jerrold Nadler, D-N.Y., and the Democratic and Republican leaders of the antitrust panel.

“We strongly encourage you to make use of this opportunity to correct the record and provide the Committee with sworn, truthful and accurate responses to this request as we consider whether a referral of this matter to the Department of Justice for criminal investigation is appropriate,” the letter said.

Jassy took over the top position at Seattle-based Amazon from founder Jeff Bezos in July. Bezos became executive chairman.

Amazon denied that its executives had misled the panel in their testimony.

“Amazon and its executives did not mislead the committee, and we have denied and sought to correct the record on the inaccurate media articles in question," the company said in a statement. “As we have previously stated, we have an internal policy, which goes beyond that of any other retailer’s policy that we’re aware of, that prohibits the use of individual seller data to develop Amazon private-label products.'''

Amazon said it investigates any allegations of violations of its policies and takes “appropriate action" when warranted.

“In addition, we design our search experience to feature the items customers will want to purchase, regardless of whether they are offered by Amazon or one of our selling partners," the statement said.

Amazon's third-party marketplace, with independent merchants listing millions of their products on the site, is a huge part of the company's business. It has about 2 million sellers on its marketplace, and Amazon has said that more than half the goods sold on Amazon.com come from third-party sellers. It also makes money by charging third-party sellers fees, bringing in tens of billions in revenue.

Already in a May 2020 letter to Bezos, the subcommittee threatened a subpoena if Bezos didn't agree voluntarily to appear before the panel.

The Wall Street Journal reported then that Amazon used sensitive, confidential information about sellers on its marketplace, their products and transactions to develop its own competing products. An Amazon executive denied such a practice in statements at a subcommittee hearing in July 2019, saying the company has a formal policy against it.

The letter to Bezos said the statements by Amazon attorney Nate Sutton appeared to be misleading “and possibly criminally false" or constituting perjury.

Bezos testified on the issue in an appearance at a July 2020 hearing on Big Tech's alleged monopolistic practices along with Facebook CEO Mark Zuckerberg, Apple CEO Tim Cook and Google CEO Sundar Pichai.

Addressing allegations that Amazon has used data generated by independent sellers on its platform to compete against them, Bezos at the time said it would be “unacceptable” if those claims were proven to be true.

The panel's new letter to Jassy also cites the testimony by Sutton, who denied that the company used sellers' data to compete with them or help create the company's own private-brand products. Sutton said the site's algorithms were “optimized to predict what customers want to buy regardless of the seller."

One of the media reports cited in the letter quotes a former Amazon employee as saying: "I used to pull sellers’ data to look at what the best products were when I was there."

The letter made clear that the committee believed the media reports and not the testimony of Amazon's representatives. “Each of these investigative reports are inconsistent with the sworn testimony and numerous statements made by Amazon’s executives,” it said.

The District of Columbia sued Amazon in May in an antitrust action, accusing the company of anticompetitive practices in its treatment of sellers on its platform. The practices have raised prices for consumers and stifled innovation and choice in the online retail market, the lawsuit alleged.

The suit maintains that Amazon has fixed online retail prices through contract provisions that prevent merchants selling their products on Amazon.com from offering them at lower prices or on better terms on any other online platform, including their own websites. Amazon rejected the allegations.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News

All news about AMAZON.COM, INC.
06:21aItaly fines Amazon $1.3B, alleging harm to outside sellers
05:36aItalian Competition Regulator Fines Amazon 1.13 Billion Euros for Alleged Abuse of Mark..
05:19aAmazon Gets $1.28 Billion Antitrust Fine in Italy -- Update
03:51aAmazon Gets $1.3 Billion Fine in Italian Market Dominance Abuse Case
03:45aItaly Imposes Around $1.3 Billion on Amazon for Alleged Abuse of Market Dominance
03:02aTech firms say EU rules should ensure they are regulated in their bases
12/08EXPLAINER : What caused Amazon's outage? Will there be more?
12/08AMAZON COM : personalizes employee COVID-19 vaccine education
12/08AMAZON COM : front-line employees win big with Max Your Vax sweepstakes
12/08Strategic Organizing Center Files Complaint Over Amazon Ads
More news
Analyst Recommendations on AMAZON.COM, INC.
More recommendations
Financials (USD)
Sales 2021 470 B - -
Net income 2021 21 038 M - -
Net cash 2021 38 014 M - -
P/E ratio 2021 86,5x
Yield 2021 -
Capitalization 1 787 B 1 787 B -
EV / Sales 2021 3,72x
EV / Sales 2022 3,10x
Nbr of Employees 1 298 000
Free-Float 82,7%
Duration : Period :
Amazon.com, Inc. Technical Analysis Chart | AMZN | US0231351067 | MarketScreener
Technical analysis trends AMAZON.COM, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 50
Last Close Price 3 523,16 $
Average target price 4 121,35 $
Spread / Average Target 17,0%
EPS Revisions
Managers and Directors
Andrew R. Jassy President, Chief Executive Officer & Director
Brian T. Olsavsky Chief Financial Officer & Senior Vice President
Jeffrey P. Bezos Executive Chairman
Patricia Q. Stonesifer Independent Director
Thomas O. Ryder Independent Director
Sector and Competitors
1st jan.Capi. (M$)
AMAZON.COM, INC.8.17%1 786 762
JD.COM, INC.-10.93%121 605
ETSY, INC.38.27%31 188
WAYFAIR INC.5.39%24 879
MOMO.COM INC.238.78%10 898
MONOTARO CO., LTD.-12.76%9 995