California investigators are examining Amazon's business practices as part of an investigation into the e-commerce giant, people familiar with the matter told the Wall Street Journal. The state’s review focuses in part on how Amazon treats sellers on its online marketplace and how its own products compete with third-party sellers.
Neither Amazon nor California has disclosed an antitrust investigation. However, Amazon has faced investigations for similar practices in Europe. According to the WSJ, the European Commission is expected to bring formal antitrust charges soon against the company, after launching an in-depth investigation last year into the company's handling of sellers' data.
Amazon declined to comment, as did the California Attorney General's office.
The New York Times reported separately that the state of Washington also is looking at Amazon's sales practices. The investigation is not at an advanced stage, according to the paper's sources.
In April, the Journal reported that Amazon employees used data about independent sellers on its platform to develop competing products. According to former workers, the company sometimes asked an Amazon business analyst to create reports featuring restricted information or using supposedly aggregated data that was derived exclusively or almost entirely from one seller.The House Judiciary Committee is also examining Amazon, its competitive practices and its impact on markets. Lawmakers have said Amazon hasn’t fully responded to requests for information about its relationship to sellers.
