Amazon (NASDAQ: AMZN) is facing scrutiny from a bipartisan group of lawmakers, with the testimonies of current and former executives being called into question over being potentially misleading.
Representatives Ken Buck (R-CO), David Cicilline (D-RI), Matt Gaetz (R-FL), Pramila Jayapal (D-WA), and Jerrold Nadler (D-NY) co-signed a letter sent to Amazon CEO Andy Jassy on Sunday. The lawmakers have demanded evidence to corroborate testimonies given by members of Amazon's c-suite, most notably, former CEO Jeff Bezos' testimony before the House Judiciary Committee's Antitrust Subcommittee.
In the letter, the representatives note that "credible reporting" contradicted the sworn testimonies provided to the subcommittee. The letter cites a Reuters special report that outlines a campaign by Amazon to systematically create knockoff products of popular products on its Indian marketplace while gaming search results to boost them over the competition.
"At best, this reporting confirms that Amazon's representatives misled the Committee," the Representatives wrote. "At worst, it demonstrates that they may have lied to Congress in possible violation of federal criminal law."
The representatives recall previous testimonies where executives had claimed, under oath, that the company's algorithms were "optimized to predict what customers want to buy regardless of the seller." In a letter sent to the subcommittee following a 2019 hearing, Amazon's General Counsel would claim that Amazon's policies forbade "the use of data related specifically to individual sellers" in developing its private-label strategy.
A spokesperson from Amazon has since stated that executives did not issue misleading testimonies and reiterated the company's policies regarding third-party data. At the time of writing, there is no indication that Amazon has provided any corroborating evidence to the subcommittee. In their letter, representatives noted that evidence was to be considered towards the subcommittee's decision to involve the Department of Justice (DoJ).
Amazon shares initially appear to have shrugged off the potential ramifications of the letter, gaining 1.7% on Monday. Tuesday seemed a bit rockier, with shares sliding 0.6% by 12:30 p.m.