Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. House panel refers Amazon to Justice Department amid competition probe

Published 03/09/2022, 07:42 AM
Updated 03/09/2022, 03:06 PM
© Reuters. FILE PHOTO: The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, U.S., February 14, 2019. REUTERS/Brendan McDermid

WASHINGTON (Reuters) - Five members of the U.S. House Judiciary Committee have asked the U.S. Department Of Justice (DOJ) to investigate Amazon.com Inc (NASDAQ:AMZN) for "potentially criminal conduct" by the company and some of its senior executives.

In a letter to the Attorney General of the United States, the bipartisan group of lawmakers said Amazon had engaged in a "pattern and practice of misleading conduct that suggests" it was acting with an improper purpose to influence or obstruct the panel's investigation into competition in digital markets.

"We have no choice but to refer this matter to the Department of Justice to investigate whether Amazon and its executives obstructed Congress in violation of applicable federal law," stated the letter dated March 9.

In response, an Amazon spokesperson told Reuters in an emailed statement: "There's no factual basis for this, as demonstrated in the huge volume of information we've provided over several years of good faith cooperation with this investigation."

A DOJ spokesperson said the department has received the letter and will review it.

The referral to the DOJ follows a previous warning from members of the U.S. committee in October 2021 accused Amazon's top executives, including founder Jeff Bezos, of either misleading Congress or possibly lying to it about Amazon's business practices.

That letter had come days after a Reuters investigation showed that Amazon had conducted a systematic campaign of copying products and rigging search results in India to boost sales of its own brands - practices Amazon has denied engaging in.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The members had at the time stated the Reuters story and recent articles in several other news outlets "directly contradicts the sworn testimony and representations of Amazon's top executives – including former CEO Jeffrey Bezos."

Amazon at the time said the company 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 Wednesday's letter to the U.S. attorney general, the U.S. lawmakers cited stories from various media outlets including Reuters, the Wall Street Journal and Politico about the American e-commerce giant's business practices.

They added that Amazon had declined several opportunities to demonstrate with evidence that it had made accurate and complete representations to the panel during its investigation.

The Reuters investigation in October, which was based on a review of thousands of internal Amazon documents, showed that, at least in India, Amazon had a formal, clandestine policy of manipulating search results to favor Amazon's own products, as well as copying other sellers' goods – and that at least two senior company executives had reviewed it.

The latest letter from U.S. lawmakers cited the Reuters story, and released a letter from Amazon dated Nov. 1 in which it told five committee members that the company was "looking into the allegations in the Reuters article," adding that "doing so will take time."

Amazon also told the U.S. panel that "creating private brands that are similar or even identical to existing brands is a common retail practice."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.