Amazon Warns Merchants About Antitrust Bills in Congress, Says Might Hurt Their Business

Amazon has warned some merchants selling via its marketplace that antitrust proposals in the US Congress might hurt their business, a company spokesperson said.

In June, the US House Committee on the Judiciary approved legislation that would make companies like Amazon decide between running a platform and competing on it. The antitrust bills have garnered bipartisan support, representing Washington’s most serious challenge yet to big technology firms’ power over online markets.

Recently, an Amazon programme manager for public policy emailed a merchant to say of the proposals, “We are concerned that they could potentially have significant negative effects on small and medium-sized businesses like yours that sell in our store.”

The staffer then requested to have a phone conversation, according to the email, which was posted online by the e-commerce blog and advisory EcomCrew. Amazon confirmed the authenticity of the message.

When asked if the company had entreated merchants to help it lobby against the legislation, Amazon said its email spoke for itself. The spokesperson also said the outreach reflected a limited engagement with sellers, with whom it communicates regularly across different topics.

In a prior statement, Amazon said the antitrust legislation would make it harder for merchants to make a living and reduce price competition, likely hurting consumers.

CNBC earlier reported news of the correspondence on Wednesday.

© Thomson Reuters 2021

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