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Inside the Brutal Business Practices of Amazon—And How It Became “Too Toxic to Touch”

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In May of 2020, seven members of the House Judiciary Antitrust Subcommittee penned a letter to then CEO of Amazon Jeff Bezos. “On April 23,” their message began, The Wall Street Journal “reported that Amazon employees used sensitive business information from third-party sellers on its platform to develop competing products.” The article contradicted previous sworn testimony from the company’s general counsel, possibly rendering the testimony “false or perjurious,” the seven congressional leaders wrote.

The Journal’s exposé, which ultimately spurred Bezos’s first-ever congressional testimony, was written by Dana Mattioli as part of the paper’s wide-ranging investigation into Amazon’s business practices. At the time, Mattioli, a longtime business reporter, had recently moved into the Amazon beat, her interest piqued by the corporation’s tentacular infiltration of nearly every aspect of American economic life. Now, four years later, she’s out with The Everything War, a new book-length examination of Amazon that explores everything from its rise to power to its lobbying efforts and the brewing backlash against it.

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Where Wall Street, Washington, and Silicon Valley meet.

In this interview with Vanity Fair, edited for length and clarity, Mattioli and I spoke about the challenges of reporting on an infamously secretive and combative company, Amazon’s forays into political-influence peddling, its new foe in the Biden administration, and which candidate she thinks Amazon execs want to see back in the White House come January 2025.

Vanity Fair: What first got you interested in covering Amazon?

Dana Mattioli: I was The Wall Street Journal’s mergers-and-acquisitions reporter for six years, and in that role, my job was to cover which companies are buying other companies across industries globally. Something fascinating happened during my tenure in that role. It wasn’t just retail companies that were nervous about Amazon. I’d speak to the bankers, the lawyers, the CEOs, the board members at different companies, and they started talking about how they were worried about Amazon invading their industry. Over the course of those six years, those questions got louder. It started bleeding into other sectors where you wouldn’t even really think about Amazon at the time. The company seemed to stretch into every vertical and its tentacles kept spreading. It occurred to me that this was the most interesting company, but also one of the most secretive companies in business history. That to me seemed like such a fun challenge to dig in and see what was going on behind the scenes.

What are the sorts of challenges reporters covering the company face?

I would say that, as it relates to me, they didn’t provide access, but that doesn't mean I didn’t get access. I spoke to 17 S-team members—the most senior people at the company—for this book, without the company knowing. I spoke to hundreds of people in and around the company. I had hundreds of pages of internal documents. They didn’t really cooperate for the book in setting up interviews, and I understand why. Some of my investigations at the Journal had been very hard-hitting. One of them was the basis for Jeff Bezos’s being called to testify to Congress for the first time in his career. So they didn't participate on an official basis, but I of course did a full fact-check. Out of fairness, I incorporate their PR statements and rebuttals very generously throughout. But it is an interesting company from a PR standpoint. There was an investigation from Mother Jones about the company bullying reporters, how they have lied to reporters in the past, and how that makes things difficult for reporters trying to cover the company. And that investigation questions whether that’s a tactic to get people to back off and not even want to cover them in the first place.

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What do you think it is about Amazon’s internal culture that made so many employees willing to talk to you?

Amazon is the most interesting company culture and the most aggressive one I’ve ever covered. It’s a giant company. More than a million people work there. The turnover and the burnout is much higher than at most other companies. People tend not to last, because it’s very aggressive and it can be bruising. As a result of that, a lot of people have come to me—both people still there and people that have left—to tell me their experiences.

When I delve into what goes on behind the scenes and the anticompetitive business behaviors that make Amazon win so often, a lot of it is the product of this culture. A lot of the shocking behaviors are because of this company’s culture. If you’re auditioning for your job every day, and you’re auditioning against every other brilliant employee there, and you know that at the end of the year, 6% of you are going to get cut no matter what, and at the same time, you have access to unrivaled data on partners, sellers, and competitors, you might be tempted to look at that data to get an edge and keep your job and get to your restricted stock units. If you’re at [Amazon] and you’re meeting with [outside companies] on the dealmaking side or the Alexa venture capital side, you might be tempted to not forget what you learned in those meetings and use it on a product to have a home run.

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acdha
15 hours ago
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“When I delve into what goes on behind the scenes and the anticompetitive business behaviors that make Amazon win so often, a lot of it is the product of this culture. A lot of the shocking behaviors are because of this company’s culture. If you’re auditioning for your job every day, and you’re auditioning against every other brilliant employee there, and you know that at the end of the year, 6% of you are going to get cut no matter what, and at the same time, you have access to unrivaled data on partners, sellers, and competitors, you might be tempted to look at that data to get an edge and keep your job and get to your restricted stock units. If you’re at [Amazon] and you’re meeting with [outside companies] on the dealmaking side or the Alexa venture capital side, you might be tempted to not forget what you learned in those meetings and use it on a product to have a home run.”
Washington, DC
freeAgent
6 hours ago
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Los Angeles, CA
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FTC says Amazon executives destroyed potential evidence by using apps like Signal

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Illustration showing Amazon’s logo on a black, orange, and tan background, formed by outlines of the letter “A.”
Illustration by Alex Castro / The Verge

FTC lawyers submitted a filing on Thursday that claims Amazon’s top execs used Signal’s disappearing messages feature to destroy evidence relevant to the agency’s massive antitrust lawsuit. (You remember the one? The FTC accused Amazon of creating a secret “Project Nessie” pricing algorithm that may have generated more than $1 billion in extra profits.)

Now, The Washington Post (which is owned by Amazon founder and former CEO Jeff Bezos) reports that Amazon is just one of several companies recently accused of turning to encrypted messaging apps like Signal that can permanently erase messages automatically.

You may recall the government making similar arguments about Sam Bankman-Fried’s use of Signal during his trial for fraud and how...

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freeAgent
6 hours ago
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Good luck with that, Amazon.
Los Angeles, CA
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Tesla’s Autopilot and Full Self-Driving linked to hundreds of crashes, dozens of deaths

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Left side of Tesla Model 3 main screen showing a computer-generated image of an intersection with cars parked on the sides and the Model 3 following another car
Image: Owen Grove / The Verge

In March 2023, a North Carolina student was stepping off a school bus when he was struck by a Tesla Model Y traveling at “highway speeds,” according to a federal investigation that published today. The Tesla driver was using Autopilot, the automaker’s advanced driver-assist feature that Elon Musk insists will eventually lead to fully autonomous cars.

The 17-year-old student who was struck was transported to a hospital by helicopter with life-threatening injuries. But what the investigation found after examining hundreds of similar crashes was a pattern of driver inattention, combined with the shortcomings of Tesla’s technology, resulting in hundreds of injuries and dozens of deaths.

Drivers using Autopilot or the system’s more advanced...

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freeAgent
16 hours ago
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Los Angeles, CA
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Tesla Autopilot is again under NHTSA investigation after doubts over recall remedy

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Tesla Autopilot finds itself once again under NHTSA investigation after the agency is now doubting the effectiveness over the 2-million vehicle “recall” last year.

more…
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freeAgent
16 hours ago
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"There’s an unfortunate way to bypass that, which I don’t want to popularize even though it’s widely known."

You mean putting some electrical tape over the camera?
Los Angeles, CA
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People Are Slowly Realizing Their Auto Insurance Rates Are Skyrocketing Because Their Car Is Covertly Spying On Them

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Last month the New York Times’ Kashmir Hill published a major story on how GM collects driver behavior data then sells access (through LexisNexis) to insurance companies, which will then jack up your rates.

The absolute bare minimum you could could expect from the auto industry here is that they’re doing this in a way that’s clear to car owners. But of course they aren’t; they’re burying “consent” deep in the mire of some hundred-page end user agreement nobody reads, usually not related to the car purchase — but the apps consumers use to manage roadside assistance and other features.

Since Kashmir’s story was published, she says she’s been inundated with complaints by consumers about similar behavior. She’s even discovered that she’s one of the folks GM spied on and tattled to insurers about. In a follow up story, she recounts how she and her husband bought a Chevy Bolt, were auto-enrolled in a driver assistance program, then had their data (which they couldn’t access) sold to insurers.

GM’s now facing 10 different federal lawsuits from customers pissed off that they were surreptitiously tracked and then forced to pay significantly more for insurance:

“In 10 federal lawsuits filed in the last month, drivers from across the country say they did not knowingly sign up for Smart Driver but recently learned that G.M. had provided their driving data to LexisNexis. According to one of the complaints, a Florida owner of a 2019 Cadillac CTS-V who drove it around a racetrack for events saw his insurance premium nearly double, an increase of more than $5,000 per year.”

GM (and some apologists) will of course proclaim that this is only fair that reckless drivers pay more, but that’s generally not how it works. Pressured for unlimited quarterly returns, insurance companies will use absolutely anything they find in the data to justify rising rates.

And as the sector is getting automated by sloppy AI, those determinations aren’t going to go in your favor (see: AI’s rushed implementation in healthcare). That’s before the fact that consumers aren’t being told about the surveillance, and aren’t given a clear option to stop it. Or that the data is also being sold to a litany of dodgy data brokers who, in turn, see minimal oversight.

If this follows historical precedent, GM will pay out a relative pittance in legal fees and fines, claim they’ve changed their behavior, then simply rename these programs into something else after heavy consultation with their legal department. Something more carefully crafted, with bare-bones consumer alerts, to exploit the fact that the U.S. remains too corrupt to pass even a baseline modern privacy law.

Automakers — which have long had some of the worst privacy reputations in all of tech — are one of countless industries that lobbied relentlessly for decades to ensure Congress never passed a federal privacy law or regulated dodgy data brokers. And that the FTC — the over-burdened regulator tasked with privacy oversight — lacks the staff, resources, or legal authority to police the problem at any real scale.

The end result is just a parade of scandals. And if Hill were so inclined, she could write a similar story about every tech sector in America, given everything from your smart TV and electricity meter to refrigerator and kids’ toys now monitor your behavior and sell access to those insights to a wide range of dodgy data broker middlemen, all with nothing remotely close to ethics or competent oversight.

And despite the fact that this free for all environment is resulting in no limit of dangerous real-world harms, our Congress has been lobbied into gridlock by a cross-industry coalition of companies with near-unlimited budgets, all desperately hoping that their performative concerns about TikTok will distract everyone from the fact we live in a country too corrupt to pass a real privacy law.

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freeAgent
17 hours ago
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Los Angeles, CA
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LAX plans to update terminal and gate numbers ahead of Olympics

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Los Angeles Airport's board of commissioners has designated $43.6 million to improve the ways travelers navigate the airport.

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freeAgent
18 hours ago
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Hahahahahaha, I love the absolute chaos of LAX. Never change, my most hated of airports.
Los Angeles, CA
mareino
17 hours ago
I kind of want to file a CEQA demanding that they keep something named Concourse Zero.
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