Amazon Under Senate Investigation for Alleged China-Linked Bribery on Marketplace, Bloomberg Reports

Amazon.com Inc. (NASDAQ:AMZN) is facing an investigation from a U.S. Senate committee over allegations that its marketplace is susceptible to influence from China, specifically through a network of employees allegedly accepting bribes from third-party sellers, according to a report from Bloomberg News.

Details of the Investigation

Republican staff on the Senate Small Business Committee are reportedly looking into what they termed "Amazon negligence related to Chinese influence," Bloomberg reported on Thursday. Investigators told at least one witness they had found "compelling evidence," though the committee has not publicly released any specific findings.

The probe follows earlier Bloomberg reporting on an alleged bribery scheme where Amazon employees in China were accused of taking payments from merchants. In exchange, these employees would allegedly provide favorable treatment, such as restoring suspended selling privileges or reversing penalties on the platform.

Seller Allegations and Marketplace Integrity

The investigation highlights the operational challenges within Amazon's massive third-party marketplace, a critical component of its e-commerce business.

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• Third-party sellers account for approximately 60% of all products sold on Amazon's platform.
• According to Bloomberg, committee investigators interviewed an Amazon seller who claimed to have provided recordings of an intermediary. This intermediary allegedly detailed how to pay Amazon employee contacts in China to manipulate marketplace decisions.

Many merchants have previously voiced frustration over what they describe as arbitrary account suspensions and limited options for appeal, creating an environment where some may seek illicit insider help.

Broader Regulatory Scrutiny

This Senate inquiry adds to the growing list of regulatory and legal challenges confronting Amazon. The company is already contending with significant antitrust and consumer protection cases in both the United States and Europe.

For investors, the probe represents another potential source of regulatory risk and could lead to increased compliance costs or operational changes if the allegations are substantiated. Amazon has previously denied allegations of anticompetitive and deceptive business practices.