Officials in California and Washington are investigating Amazon’s business practices, focusing on whether the technology giant is reported to be abusing its third-party power in its online marketplace The New York Times and the Wall Street Journal.
Amazon is facing increasing antitrust scrutiny in both the U.S. and overseas as to how the company aggregates data from these sellers and reportedly gives its own products an unfair advantage. Successively current journal reportThe European Union plans to indict Amazon for this alleged exploitation and anti-competitive practices. A U.S. senator has asked the Department of Justice to launch a similar investigation the company’s algorithmic monopoly.
According to the Times internal correspondence, the Washington Attorney General is in the preliminary stages of planning an investigation to determine whether Amazon is making it difficult for sellers to list their products elsewhere online. Brionna Aho, a spokeswoman for the Attorney General of Washington, Bob Ferguson, told The Times that the office has neither confirmed nor refused to investigate.
In California, people familiar with the matter told the journal that the state review would examine how the technology giant deals with advertising and selling its own products in competition with third parties. Amazon has openly admitted collecting data from the Millions of sellers on its platform and a WSJ probe It was recently discovered that Amazon employees are using this data to better develop competing products under their own brand.
While California’s Attorney General Xavier Becerra’s office refused to comment when asked about the company back in DecemberBecerra said to the journal: “It is hard to believe that you will not look at a company like Amazon considering how widespread it is. Are they using all this data in a way that they can essentially kill real competition? “
Amazon did not immediately respond to Gizmodo’s request for a comment. In addition to these allegations of plagiarizing the competition, Amazon also has a well-documented history of headaches with fake products and dubious manufacturers that are widely available on their online marketplace.