Amazon.com Inc (NASDAQ:AMZN) has come under the scrutiny of a U.S. Senate investigation over allegations that China may have influenced its online marketplace, according to Bloomberg on Thursday. This adds fresh regulatory hurdles for an internet giant already facing significant challenges.
Based on information from Bloomberg, staff members from the Republican faction of the Senate Committee on Small Business are probing what they have described as “Amazon’s negligence regarding Chinese influence.” Investigators have informed at least one witness that they possess “compelling evidence,” though the committee has yet to publicly disclose any specific findings.
This investigation follows earlier reports from Bloomberg about an alleged bribery network involving Amazon employees in China, who were accused of receiving monetary payments from third-party sellers in exchange for preferential treatment on the company’s platform.
According to Bloomberg, committee investigators interviewed Jack Nehala, an inventor and Amazon seller from Staten Island, who stated he provided recordings of conversations with an intermediary. This intermediary claimed to have connections with Amazon employees in China who could influence marketplace decisions for a fee.
Third-party sellers account for approximately 60% of goods sold on Amazon’s marketplace. As reported by Bloomberg, many sellers have long complained about arbitrary account suspensions and limited opportunities to appeal penalties, which has driven some of them to seek help from company insiders to overturn punitive measures or regain selling privileges.
Investigators were particularly interested in how employees in China could affect Amazon’s platform operations, according to the article.
This new investigation adds to a growing list of regulatory challenges for Amazon, including antitrust and consumer protection cases in both the United States and Europe. The company has previously denied allegations of anti-competitive and unfair business practices.
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