Amazon may face criminal liability for lying to Congress, House lawmakers allege
By Brian Fung, CNN
House lawmakers who spent much of 2019 and 2020 probing Amazon for possible antitrust violations now accuse the tech giant of lying to Congress and want the Justice Department to investigate “potentially criminal conduct” from the company and some of its executives.
In a letter to Attorney General Merrick Garland dated March 9, members of the House Judiciary Committee say “Amazon lied through a senior executive’s sworn testimony” about how the company had used the data it collects from third-party sellers. The lawmakers further allege the company “engaged in a pattern and practice of misleading conduct,” which may have been an attempt “to influence, obstruct, or impede” the House committee’s investigation.
The letter threatens to focus even greater scrutiny on Amazon as it seeks antitrust approval for its acquisition of MGM, and as lawmakers continue to weigh a raft of bills targeting competition in digital markets.
The lawmakers’ concerns zero in on claims Amazon made during the investigation that it does not use data from third-party sellers to determine how to introduce its own competing products that threaten those sellers’ business.
Amazon further “attempted to cover up its lie by offering ever-shifting explanations” about how it used seller data, according to the letter, which was signed by Reps. Jerry Nadler and Ken Buck, the committee’s top Democrat and Republican, as well as leading members of the panel’s antitrust subcommittee.
Wednesday’s letter added that the investigation found evidence to the contrary, which also dovetailed with public reporting by the Wall Street Journal.
Amazon didn’t immediately respond to a request for comment. The company said last year that “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.”
In 2020, the Judiciary Committee antitrust panel published a landmark report summarizing the results of its investigation into Big Tech, finding that Amazon, Apple, Facebook and Google enjoy “monopoly power” and dominate their respective parts of the industry, thanks in part to their control of data.
During a hearing in July 2020, Amazon CEO Jeff Bezos was confronted by lawmakers about Amazon’s use of data. He admitted that while Amazon has “a policy against using seller-specific data to aid our private label business … I can’t guarantee you that policy has never been violated.”
But although Bezos and other company officials tried to paint any violations of the policy as the result of rogue employee action, “multiple, credible reports offered specific evidence that Amazon employees regularly violated the Seller Data Protection Policy, and senior officials knew about this practice,” the letter said. “Amazon offered little more than a declaration that it was ‘satisfied’ that Amazon takes its policy seriously.”
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