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Investigation Reveals Amazon’s Alleged Use of Shell Company to Spy on Competitors
The recent report from The Wall Street Journal has shed light on Amazon’s alleged activities involving a shell company, Big River Services International, to gather intelligence on its competitors, including eBay, FedEx, and Walmart. In response to these claims, Amazon vehemently refuted the accusations, stating that they are false.
Project Curiosity and Small Business Insights
According to The Wall Street Journal, the project, initially known as “Project Curiosity” and later rebranded as “Small Business Insights,” was initiated in 2015. The primary objective was to compare the experiences of third-party sellers on Amazon with those on other e-commerce platforms. However, over time, the project evolved into a method of surveilling rival companies, particularly Walmart.
Big River, the shell company, engaged in purchasing products and selling them on platforms such as Best Buy, Overstock, and Walmart. The company also utilized logistics services from competitors like FedEx and UPS. Allegedly, Amazon employees working on the Big River team were instructed to capture images or screenshots of competitors’ pricing strategies, product catalogs, and advertising systems. Additionally, they reportedly attended rivals’ conferences to gather “exclusive” information.
Amazon’s Response
Contrary to these reports, Amazon stated that its Small Business Insights team is primarily focused on understanding the experiences of third-party sellers on its own platform, rather than spying on competitors. The company emphasized that 70% of Big River’s revenue is derived from Amazon Stores, not rival platforms. Amazon also highlighted the presence of seller accounts from companies like Walmart, FedEx, eBay, Shopify, and Target on its platform, suggesting a mutual exchange of information.
Amazon defended the secrecy surrounding Big River, explaining that it was necessary to provide team members with a genuine small business experience. The company pointed out that the information obtained by Big River is accessible to millions of sellers who operate on competing platforms.
Ongoing Controversy
Despite Amazon’s refutations, certain key claims outlined in The Journal’s investigation remain unaddressed. Questions concerning the handling of sensitive information by Big River employees, such as limiting communication via email and using separate accounts for interactions with competitors, have not been directly answered by the company.
Moreover, The Wall Street Journal’s findings suggest that Amazon utilized pricing data obtained through Big River’s activities with FedEx to enhance its logistics services and compete more effectively. Amazon, however, maintains that no employee had access to FedEx pricing information before the launch of FedEx Fulfillment, a direct competitor to Fulfillment by Amazon.
In conclusion, the revelations regarding Amazon’s supposed use of a shell company for competitive surveillance have generated significant controversy. The conflicting responses from Amazon and The Wall Street Journal’s detailed investigation have raised concerns about privacy, fair competition, and corporate espionage in the e-commerce industry.
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