US Senate investigates possible Chinese influence on Amazon marketplace

This new scrutiny adds a regulatory challenge to Amazon, which already faces accusations related to potential antitrust violations and deceptive trade practices—allegations the company refutes. Furthermore, the investigation expands the analysis of the company's global e-commerce business beyond U.S. territory.

International Market Allegations

The contact between the Small Business Committee and an Amazon seller occurred after a report published by Bloomberg News. According to this publication, there is an international bribery market involving Amazon employees in China, who allegedly offer favors to merchants interested in selling products on the company's platform.

Jack Nekhala, a Staten Island inventor who creates a product to secure sheets to mattresses, was one of the interviewees. He reported speaking with Senate researchers after the report was released. Nekhala stated he recorded conversations with an intermediary who promised to use contacts of Amazon employees in China to benefit businesses in exchange for payments. The researchers showed great interest in understanding how the company's employees based in China could manipulate the operation of the Amazon marketplace.

Seller Difficulties

Independent merchants account for about 60% of all items sold on Amazon. These sellers report having suffered arbitrary suspensions and other unfair treatment from the company for years, in addition to facing obstacles when trying to get Amazon to review their complaints. This situation has led some of these sellers to try paying internal company individuals to gain assistance in reversing account suspensions or other penalties imposed by the platform.

Amazon's Stance

When contacted by Bloomberg, an Amazon spokesperson declined to comment immediately on the investigation. A member of the Small Business Committee's communications team also did not respond to the agency's requests for comment. The report adds that another person who frequently interacts with Amazon sellers was sought out by the committee's researchers, who were looking for referrals of other merchants to be interviewed during the inquiry process.