Amazon In Legal Hot Water? Republican Senator Calls For Criminal Probe Of Company’s Data Practices

Amazon’s use of third-party seller data may land the e-commerce giant in legal hot water. On Tuesday, Sen. Josh Hawley, R-Mo., called for a criminal investigation of Jeff Bezos’ company for potential “predatory and exclusionary data practices to build and maintain a monopoly.”

Hawley made the request in a letter sent to U.S. Attorney General William Barr. His accusations stemmed from a recent Wall Street Journal report which alleged that company employees have abused third-party seller data to develop Amazon-branded rival products.

“These practices are alarming for America’s small businesses even under ordinary circumstances,” Hawley argued in his letter. “But at a time when most small retail businesses must rely on Amazon because of coronavirus-related shutdowns, predatory data practices threaten these businesses’ very existence.”

The company previously denied using sales data from individual companies during a 2019 hearing with the House Antitrust Committee. However, documents obtained by the Journal coupled with interviews from former Amazon employees suggest that the company had been doing just that.

Amazon has denied the allegations, claiming that such actions would violate company policy, and has launched an investigation into the matter. Speaking with the Verge, a company spokesperson said that its employees are not allowed to use “seller-specific data” for the purposes of choosing which products to develop.

“It’s simply incorrect to suggest that Amazon was intentionally misleading in our testimony,” a spokesperson said in another statement to CNBC.

The Department of Justice has confirmed the receipt of Hawley’s letter and is currently reviewing its claims.

Elected in 2018, Hawley has made a habit of criticizing the practices of tech companies and taking them to task for potential privacy or antitrust violations. At 40, he is the youngest member of the Senate.