A Wall Street Journal report in April supplied an in-depth have a look at this follow. The investigation discovered that whereas Amazon has insurance policies that bar workers from information from particular person sellers, the foundations are simple to bypass and never at all times enforced. One supply advised the WSJ that “managers sometimes would ask an Amazon business analyst to create reports featuring the information” they wouldn’t in any other case be capable to entry.
Amazon’s Assoc. General Counsel advised me beneath oath that Amazon does NOT, “use any specific seller data when creating its own private brand product.”
Reports revealed that was a lie: that they DO entry information on third celebration sellers.
So I simply requested Jeff Bezos which it’s. Watch: pic.twitter.com/MiR7NHI7Y8
— Rep. Pramila Jayapal (@RepJayapal) July 29, 2020
Some of those claims had been backed up by a minimum of one former Amazon worker who spoke to the antitrust subcommittee, based on Washington Rep. Pramila Jayapal, who learn a quote from the unnamed particular person whereas questioning Bezos. “There’s a rule but there’s nobody enforcing or spot checking they just say ‘don’t help yourself to the data,’ she said. “It’s a candy shop, anyone can have access to anything they want.”
It was throughout Jayapal’s questioning that Bezos admitted that he “can’t guarantee you that policy has never been violated.”
“We have a policy against using seller-specific data to aid our private label business, but I can’t guarantee you that policy has never been violated,” he mentioned. “We continue to look into that very carefully, I’m not yet satisfied that we’ve gotten to the bottom of it and we’re going to keep looking into it.”
The subject has additionally drawn the scrutiny of European regulators, who opened an antitrust investigation into Amazon final yr. “Based on the Commission’s preliminary fact-finding, Amazon appears to use competitively sensitive information – about marketplace sellers, their products and transactions on the marketplace,” the European Commission (EC) wrote in a press release on the time.
The Wall Street Journal reported in June that the EC plans to file fees in opposition to the retailer.
Amazon’s use of third-party vendor information wasn’t the one subject Bezos took warmth on. He was additionally grilled on what the corporate does to cease those that promote stolen or counterfeit items (not almost sufficient, based on lawmakers).
And, like Facebook’s Mark Zuckerberg, Bezos was requested about one in all his firm’s acquisitions. Lawmakers revealed internal documents exhibiting Amazon’s aggressive technique to undercut on-line retailer diapers.com “no matter what the cost.” Amazon finally acquired the corporate in 2010.