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Regulators blame Bezos for making Amazon worse in new lawsuit main points

Regulators blame Bezos for making Amazon worse in new lawsuit main points
November 2, 2023



Remark in this storyCommentAdd for your stored storiesSaveShoppers having a troublesome time discovering what they’re searching for amid the jumble of commercials on Amazon could have any individual new responsible: Amazon founder Jeff Bezos.Up to now redacted parts of the Federal Business Fee’s antitrust lawsuit in opposition to Amazon made public on Thursday allege that Bezos suggested Amazon executives to permit extra erroneous seek effects to extend promoting income.“Amazon has greater now not handiest the choice of commercials it presentations, but in addition the choice of inappropriate junk commercials, internally referred to as ‘defects,’” newly public parts of the lawsuit say. “Mr. Bezos suggested his executives to ‘[a]ccept extra defects’ as a result of Amazon can extract billions of greenbacks via greater promoting regardless of worsening its products and services for patrons.”The go well with additionally alleges that “Amazon executives internally recognize this creates ‘hurt to shoppers’ via making it ‘nearly not possible for top of the range, useful natural content material to win over slightly related backed content material.’”A spokesperson for Amazon didn’t in an instant reply to a request for remark. Bezos owns The Washington Submit, and its meantime CEO, Patty Stonesifer, sits on Amazon’s board.The FTC filed its long-awaited go well with in opposition to Amazon in September, sudden the trade via arguing that Amazon successfully raises costs for shoppers via charging traders charges to put it on the market in its virtual market. FTC Chair Lina Khan made a dash in antitrust along with her 2017 paper “Amazon’s Antitrust Paradox,” printed when she was once a legislation scholar at Yale. However the case she’s making in opposition to Amazon these days is particularly other from the argument she made six years in the past.The allegations that Bezos would knowingly degrade the Amazon seek enjoy for patrons are sudden given the billionaire’s much-touted obsession with delighting shoppers. At Amazon, all staff will have to apply “buyer obsession,” which, in keeping with company management ideas, way they will have to “get started with the client and paintings backwards.”However, in its grievance, the FTC says Amazon executives noticed they might make more cash via expanding the choice of commercials, even supposing the ones commercials worsened the standard of seek effects and harmed the client enjoy.This tale is breaking and might be up to date.

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