San Francisco Chronicle

Congress calls Amazon’s Bezos to testify

- By David McCabe

WASHINGTON — The House Judiciary Committee on Friday called on Jeff Bezos, Amazon’s CEO, to testify before Congress, in a major escalation of its investigat­ion into the country’s largest technology companies.

Bezos, the world’s richest person, is the highestpro­file executive called to testify as part of the investigat­ion. It would allow lawmakers to question him about accusation­s that Amazon abuses it market power in online retail, mistreats warehouse workers and hurts small businesses.

Many other tech leaders, including Tim Cook of Apple, Mark Zuckerberg of Facebook and Sundar Pichai of Google, have appeared before Congress in recent years, answering questions under oath on issues like privacy and the spread of disinforma­tion. Bezos has not yet endured the same spotlight.

The panel’s antitrust subcommitt­ee has for months been investigat­ing the power of Amazon, along with that of Facebook, Google and Apple.

Last year, lawmakers requested a slew of internal documents from the companies, including emails between top executives. The letter to Bezos was a sign that the inquiry had not stopped because of the coronaviru­s pandemic.

A bipartisan group of lawmakers led by the Democratic chairman of the committee, Rep. Jerrold Nadler of New York, threatened to use the panel’s power to legally compel Bezos to testify if he did not do so willingly, a serious step in any congressio­nal investigat­ion.

“Although we expect that you will testify on a voluntary basis, we reserve the right to resort to compulsory process if necessary,” the lawmakers wrote to Bezos.

An Amazon spokeswoma­n did not immediatel­y offer a comment on the committee’s demands.

Bezos has traditiona­lly relied on his deputies, like Jay Carney, a former White House press secretary, to interact with policymake­rs. He has done few indepth interviews about Amazon in recent years. But he has made moves toward becoming a greater presence in Washington.

He bought the Washington Post in 2013 and keeps a sprawling home in the city’s upscale Kalorama neighborho­od. This year, he hosted an afterparty for the annual Alfalfa Club dinner at his mansion, drawing business and political leaders.

President Trump has frequently made Bezos a target of his criticism and has often tried to link Amazon to the Post when attacking the paper. (The publicatio­n is owned by Bezos personally and has no corporate relationsh­ip with Amazon.)

In the fall, the Pentagon awarded a $10 billion cloud computing contract to Microsoft over Amazon’s rival bid; Amazon has sued, saying Trump’s antagonism was a factor.

The decision to call Bezos to testify comes after an article in the Wall Street Journal detailed how Amazon employees had used data from thirdparty sellers to hone its private label offerings, potentiall­y contradict­ing testimony given by an Amazon lawyer to the committee last year.

The lawmakers said in their letter that if the “article is accurate, then statements Amazon made to the committee about the company’s business practices appear to be misleading, and possibly criminally false or perjurious.”

Amazon executives have said that they did not believe the allegation­s in the article were accurate, but the company announced an internal investigat­ion into the issues.

So far, the antitrust investigat­ions have been largely a bipartisan affair. But there are signs that is changing. A few Republican­s on the committee signed the letter, though Rep. Jim Jordan, the Ohio lawmaker who just took over as the panel’s top Republican, did not.

Russell Dye, a spokesman for the committee’s Republican­s, said, “our members have questions for Amazon and want to get answers for the American people,” but “we wonder what Judiciary Democrats’ true motivation­s are.”

Dye said that earlier this year, Democrats said that “companies like Amazon should not exist and should be broken up simply because they are large successful businesses.”

The public has increasing­ly turned to Amazon’s online store during the coronaviru­s pandemic. Millions of homebound Americans have used the company’s delivery service to order food and other essential items, pushing its network of warehouses to its limits. From his Texas ranch, Bezos has spent the majority of his time managing the company’s response to the virus.

On Thursday, Amazon reported that it had $75.5 billion in sales in the latest quarter, up 26% from the same period a year earlier.

But Amazon’s critics have seized on this moment, as well. This growing coalition of workers, activists and lawmakers say the company has not done enough to protect its frontline workers, calling on the company to offer hazard pay and to better communicat­e with warehouse staff.

In the financial report Thursday, Bezos said that the company plans to spend $4 billion or more in the next quarter “on COVIDrelat­ed expenses getting products to customers and keeping employees safe.” He said those costs could mean that the company would have no profit.

“Amazon often acts as though it’s above the law,” Stacy Mitchell, codirector of the Institute for Local SelfRelian­ce and a longtime critic of the company, said in a statement. “Today, the House Judiciary Committee firmly demonstrat­ed that it’s not.”

 ?? Mandel Ngan / AFP 2019 ?? Amazon CEO Jeff Bezos has been called by the House Judiciary Committee to testify as part of the investigat­ion into the country’s largest tech companies.
Mandel Ngan / AFP 2019 Amazon CEO Jeff Bezos has been called by the House Judiciary Committee to testify as part of the investigat­ion into the country’s largest tech companies.

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