Amazon is in the hot seat, with US lawmakers accusing the e-commerce giant of misleading Congress and threatening a criminal probe in response.
Amazon is the world’s largest e-commerce website, but not everyone is happy with how the company conducts business. The company has recently been accused of promoting its own brands at the expense of other, more popular options.
Lawmakers are now saying Amazon lied to them about how it uses third-party seller data, accusing the company of using that data for its own benefit. Doing so would give the e-commerce giant a significant advantage over the companies using its platform to sell their goods, allowing Amazon to determine what products and features are particularly desirable to consumers and then create knockoffs. Combined with its practice of promoting its own goods over others, it paints a picture of a company that preys off of the very companies that have helped make its platform so successful.
In response to a report in Reuters, the House Judiciary Committee sent a letter to Amazon giving the company one last chance to correct the record.
“At best, this reporting confirms that Amazon’s representatives misled the Committee. At worst, it demonstrates that they may have lied to Congress in possible violation of federal criminal law. In light of the serious nature of this matter, we are providing you with a final opportunity to provide exculpatory evidence to corroborate the prior testimony and statements on behalf of Amazon to the Committee. 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.”