Bezos Answers Tough Questions During Antitrust Hearing

That’s how many the Amazon CEO answered in a nearly six-hour House Judiciary antitrust hearing Wednesday. For a Big Tech showdown, Bezos’s testimony certainly delivered the retail angle. Two major questions...

Question #1: Is Amazon using third-party seller data to create and promote its own competing products?

• Bezos’s answer: Kind of. When asked by Rep. Pramila Jayapal (D-WA) about the controversial practice (which Amazon bans), Bezos replied, “I can’t guarantee you that that policy has never been violated.”
• Why it matters: Amazon has cemented itself as the best place for small businesses to sell their wares—for 36% of Amazon sellers, it’s their only sales channel.

Question #2: How are you addressing an influx of counterfeit goods on Amazon?

• Bezos’s answer: Not my problem. “I would encourage this body to pass stricter penalties for counterfeiters and to increase law enforcement resources to go after counterfeiters,” he told lawmakers.
• Why it matters: For all its investment in rooting out fake goods, Amazon still makes money when counterfeits sell. “Only in the short term,” Bezos hedged. “I would rather lose a sale than lose a customer.”

+ While we’re here...Amazon crushed earnings, thanks in large part to increased online shopping.