Amazon’s shady business practices are revealed in an investigation.
According to a detailed investigation by Reuters, Amazon.com in India misrepresented merchants’ products as its own and rigged search results to favor its own products. This strategy runs counter to Amazon’s earlier rhetoric regarding its business practices.
This isn’t the first time Amazon has been accused of such things, according to CNBC. Anti-competitive business practices are being investigated in the United States, Europe, and India.
Amazon CEO Jeff Bezos testified before a congressional subcommittee in 2020, addressing concerns about the company’s business practices. He stated that the corporation has protocols in place to protect user information from staff access. If someone broke Amazon’s policies on the subject, he stated the corporation “would take action.” In the story, Reuters mentioned two Amazon executives: Diego Piacentini, a former senior vice president who has since left the company, and Russell Grandinetti, who oversees the company’s internal consumer division. Piacentini reported to Bezos directly. Grandinetti is part of a group of executives led by Andy Jassy, the company’s current CEO.
“At least in India, altering search results to favor Amazon’s own products, as well as replicating other seller’s goods, were part of an official, clandestine policy at Amazon,” according to a Reuters investigation based on internal Amazon papers.
According to a 2016 document obtained by Reuters titled “India Private Brands Program,” Amazon’s private-label will evaluate sales and customer ratings of particular products as a reference to reproduce on their own. This contradicts Amazon’s own statements regarding how their private label items are developed.
“As Reuters hasn’t shared the papers or their origins with us, we are unable to validate the accuracy or otherwise of the facts and assertions as described,” Amazon said in response to a question from Reuters. These allegations, we believe, are factually wrong and unsupported.”