📺 Stream EntrepreneurTV for Free 📺

Two States Are Reportedly Looking Into How Amazon Treats Sellers It's under investigation in California and Washington, according to sources.

By Mariella Moon

entrepreneur daily

This story originally appeared on Engadget

Andrei Stanescu/Getty Images via engadget

Amazon's business practices are under investigation in two states, according to The Wall Street Journal and The New York Times. California and Washington state investigators have reportedly been looking into how the company treats third-party sellers, particularly whether it's using the data it collects to compete directly against them. The Times says the Washington attorney general's office is also investigating whether Amazon is making it difficult for sellers to list their products on other websites.

WSJ reported back in April that the e-commerce giant scooped up data from its sellers — product information such as prices, total sales and how much vendors spend on marketing and shipping — to launch competing products under its private label division. In response to that report, US Senator Josh Hawley requested for a criminal antitrust investigation into the claims and the House Judiciary Committee called on Jeff Bezos to testify before Congress.

We've reached out to Amazon for a statement. Meanwhile, both spokespersons for California's and Washington's attorney general offices refused to confirm or deny any investigation when NYT asked. If the offices truly are looking into Amazon's business practices, though, then they're following in the footsteps of the European Commission. The EC reportedly spent a year investigating the company's business practices, and according to WSJ, it will soon formally file antitrust charges against the e-commerce giant for using third-party seller data to compete against them.

Mariella Moon is an associate editor at Engadget.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

She Ditched Her Steady Job in Tech to Pursue Her Love of Food. Now She's a Food Network Champion and Celebrated Cookbook Author.

A self-taught vegan chef known for her sustainable cooking practices, Chef Priyanka Naik's journey from the tech world to the Food Network is a testament to the power of passion and perseverance. Hear her insights into how embracing your unique path can lead to entrepreneurial success.

Leadership

9 Productivity Tips That the 1% Know to Follow

Is your inner high-performer waiting to be unleashed? If so, here's what the 1% swear by for peak productivity.

Devices

Save More Than 70 Percent on This iPad Pro

This refurbished iPad Pro comes with 32GB of storage space.

Starting a Business

Ask Marc | Get Free Business Advice From the Co-Founder of Netflix

Get the answers to your most challenging business problems during our next Ask Marc, live Q&A, on 5/9/24 at 2 PM ET. You don't want to miss it—send in your questions now.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.