FTC Scrutinizes Amazon’s Use of Signal Messaging App
As the spotlight of the Federal Trade Commission’s antitrust inquiry intensifies, the focus shifts to Amazon’s communication practices, particularly its utilization of the encrypted messaging app Signal. The FTC is seeking clarity on the extent to which Amazon’s executives have been using Signal and its capabilities to automatically delete messages.
The agency’s concerns stem from allegations that Amazon may have employed the app to conceal information pivotal to the FTC’s antitrust investigation, which has been underway since 2019. The legal tussle reached a new peak when the FTC took the step to sue Amazon in September, citing the company’s dominance in e-commerce markets was fortified through unfair business practices.
This week, the FTC acted to obtain more insights into Amazon’s internal policies on Signal, which promises end-to-end encryption for enhanced privacy in communications. The FTC’s allegations include claims that Amazon’s executives, such as former CEO Jeff Bezos and current CEO Andy Jassy, engaged in the manual deletion of messages, potentially circumventing the agency’s directive to preserve relevant communications.
Amazon, on its part, has responded to the accusations, labeling them as “baseless.” The company asserts that it has been transparent about its use of Signal, providing the FTC access to employees’ Signal conversations, an effort which extends beyond the scope of the FTC’s investigation.
The company further emphasizes that it has supplied the FTC with a substantial amount of information, including 1.7 million documents and over 100 terabytes of data encompassing emails, internal messaging apps, and content from company laptops. Amazon also points out that key corporate figures, including Bezos, have engaged with the FTC regarding the use of Signal and only wish to withhold privileged legal advice.
As Amazon petitions U.S. District Judge John Chun to dismiss the case, the company continues to defend its business practices as beneficial for consumer pricing and common within the retail sector. Amazon characterizes the FTC’s lawsuit as an unjustified attack on a business that prioritizes consumer interests.
Amidst these legal skirmishes, the FTC’s latest court filing requests Amazon to surrender documents concerning the preservation of information and guidelines for using ephemeral messaging applications like Signal. The FTC contends that Amazon’s delay in instructing employees to save Signal messages likely led to the loss of relevant information, a claim Amazon is poised to challenge as the case proceeds.
In a notable revelation, the FTC alleges that Amazon directed executives to adopt an Amazon-owned secure messaging app, Wickr, which would centralize message storage, just days before disclosing its use of Signal. This development adds another layer to the inquiry into Amazon’s communication strategies during the ongoing antitrust investigation.
