At the “Online Platforms and Market Power” virtual antitrust hearing today, Amazon CEO Jeff Bezos said that his company had a policy against using seller specific data to aid its private label business, but could ‘not guarantee’ it had been violated.
“What I can tell you is, we have a policy against using seller specific data to aid our private label business,” Bezos said. “But I can’t guarantee you that that policy has never been violated.”
The question of whether Amazon uses data from merchants on its platform to help launch competing products is a contentious one. In July 2019, an Amazon lawyer told the subcommittee that the company didn’t tap data from individual third-party merchants to determine what new products to create. In April, the Wall Street Journal reported that Amazon did just that.
“I’m familiar with the Wall Street Journal article that you’re talking about,” Bezos said. “And 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 at it. It’s not as easy as you would think because some of the sources in the article are anonymous but we continue to look into it.”
This is a rare appearance especially for Bezos, who speaks the least in public out of the four (he does not even participate in Amazon’s quarterly earnings calls) and unlike the other three has never sat before Congress.
Antitrust investigations matter to the companies being scrutinized, of course, but also all the businesses that depend on them. An antitrust investigation has the potential to have wide-reaching consequences on a specific market for years to come. In this case, that includes any business that sells physical goods online and uses a public cloud service like Amazon Web Services (AWS).
More to follow