Jayapal: Does amazon ever access and use 3rd party seller data when making business decisions?
Bezos: Thanks for representing us (she's Seattle's congresswoman). I can't answer yes or no. We have a policy against it but might have broken it.

Jayapal: WSJ said specifically that you do this. Are you denying that report?
Bezos: I know of that article. We're looking into it. (it came out over a month ago)
Jayapal: So you're not denying it.

Jayapal: A former employee told us it's a rule but nobody's enforcing it.

Bezos: It's a voluntary policy.
Jayapal: So there's no actual enforcement?
Bezos: No I have misspoke! The fact that we have a policy is voluntary!

Jayapal: There are numerous reports and our interviews that confirm employees have access to 3P data and are using it. This is documented. Whatever rule you have it's being breached.

Jayapal: You can access aggregate data when there are few in the marketplace?
Bezos: Yes we can get aggregate.
Jayapal: Amazon accessed a detailed sales report on a product and then launching its own competing product in 2019. That's directly in opposition to Amazon GC stmt

Jayapal: you have access to entirety of seller information. Can set rules of the game for competitors but not follow those rules yourself.
Bezos: Thanks for your question. i'm proud of 3p sellers on platform. (filibuster)

Jayapal: You have access to data your competitors don't have. They can't compete with you. Your company started in my district. But goal of cmte work is to make sure there are more Amazons. Why we need to regulate marketplaces to reduce dominance.

This R starts his thing with "my wife called me and said there was a good article on Gateway Pundit."
Going to get something to eat.

I do hope someone else will ask Amazon about the rent they collect from 3p sellers, not just the data they collect.

Gmail has organized its email notifications. They don't see that someone's the father of the designated campaign email sender. This is a pretty ridiculous line of questioning.

Val Demings note that her campaign emails go into spam too. Moving on to an actual question.

Demings questioning about Google's acquisition of Doubleclick. Good issue.

Demings: June 2016, Google merged data with Doubleclick. This was a year after Pichai was made CEO. Did you sign off on this decision? Google don't Congress this data would be separate.
Pichai: fumfer
Demings: Yes or no
Pichai: I review all important decisions
Demings: That's a Y

Demings: so now you have my gmail, location, browser history, all that data in one place. A "cross-site cookie"
Email from Doubleclick exec said this was exactly the kind of policy that would lead to backlash.

Demings: In 2007, Larry Page said this would hurt rep. But by 2016, they gained enormous market power and didn't have to care about market power. Agree?
Pichai: This is an impt issue. We make it easy to put users in control of data.

Demings: I'm concerned about Google's bait and switch with Doubleclick. Part of broader pattern of surveillance. Targeted ads are more profitable with more user data.

Pichai claims Google can't make more money from collecting data.
OH! then we can #BanTargetedAds then I guess

And here's Gym Jordan for 5 minutes, getting something to eat again.

I would say that, while Jordan is just working the refs, the problem is that Google IS A REF with enormous market power.

Scanlon: "I'd like to return to antitrust law rather than fringe conspiracy theories"
And Jordan goes ballistic.

Scanlon on to Bezos. Using the example of Quidsi. This is a pretty amazing story that's in my book.

Amazon decided to undercut http://Diapers.com  so deeply that they reduced prices to effectively $0 to force it into the ground.

Scanlon "it appears that in one month alone, Amazon was willing to bleed $200 million in diaper profit losses." How much were you willing to lose?
Bezos: This was a long time ago. But it's OK to use a loss leader right?

Bezos just kind of admitted to predatory pricing right there.

Scanlon: You increased the prices of diapers after destroying http://Diapers.com . Did you sign off on raising those prices?
Bezos: I don't remember. But I think we followed http://Diapers.com .

Scanlon: How would customers benefit when the prices were driven up when you eliminated the main competitor, http://Diapers.com ?
Bezos: I don't agree with the premise. Diapers sold everywhere!
Scanlon: This was the online marketplace.

Scanlon: In 2013 you instructed to approach other businesses the way a cheetah would approach a gazelle.
Bezos: i don't remember that. (filibuster)
Scanlon: One of biggest needs is families don't have diapers. What you did has an impact.

Neguse up. He's the vice chair of the subcommittee.

Neguse: You had a lot of competitors in 2004?
Zuck: More competitive now!
Neguse: but all your competitors are gone now. Are you a monopoly?
Zuck: we face a lot of competitors. (trying to claim that literally any connection you make with friends is a competitor to FB)

The phone is a competitor to FB

Neguse: here's a slide for a presentation that Sandberg gave in 2012 that says FB is 95% of social media.

Neguse: FB has purchased, replicated, and eliminated competition.
Zuck: but the space of people connecting with other people is a very large space.
(People talking over their fence is a competitor to FB)

Neguse: here's an email from CFO calling FB acquisition strategy "a land grab."

Neguse: IG is the 6th largest social platform, WhatsApp is 2nd largest. You own them. FB tried to buy other startups. You told a sr engineer that "you can buy any startup but it'd be a while before you can buy Google"
Zuck: That was a joke!

Neguse gives the full context of the email. Zuck's wrong.

Neguse: FB has used market power to purchase or replicate the competition. Now own the most downloaded apps of last decade. We have a word for that, that word is monopoly.

Lucy McBath up. Questioning Bezos.

McBath: We've interviewed many small biz. They mention "bullying, fear and panic" about dealing with Amazon.
Plays video of a 3P seller

Seller on video: Amazon started restricting their business, blocked them from selling textbook category. "Haven't sold a single book in last 10 months." No warning from Amazon.

the business sent 500+ communications to Amazon without response. Is this acceptable?
Bezos: No that's not, I'd like to talk to her. Doesn't seem to me the right way to treat her.
(Bezos is either lying or the site is too big to manage)

McBath: You're missing the point. This is a pattern of behavior that has to change. Are you willing to make sure that numerous sellers that have had problems with suspension is remedied?

McBath is talking about suspensions. This is a major portion of my book. Suspensions are a byzantine Phantom Zone. Your life and business can be ruined on a whim.

McBath: according to eMarketer, Amazon has 7x market share of closest ecommerce competitor. Sellers have nowhere else to go.

Bezos: I disagree. There are a lot of options out there.
(ok then)

McBath: If Amazon didn't have monopoly power would they stay in a bullying relationship?
Bezos: I don't accept the premise.

Plays video of bookseller: We've contributed to your business, followed the rules, and have been locked out. Help us earn our livelihood. We beg you. There are 14 lives at stake.

Back to Cicilline for round two. Addresses Bezos.
Don't small biz have no other option?
Bezos again says he has a different opinion. I just think we're the best option!

Cicilline: 37% of sellers on Amazon as sole source of income. 800k sellers. Doesn't Amazon refer to 3P sellers as "internal competitors"?
Bezos: um, that wouldn't surprise me?
Cicilline pulls the email.

Cicilline: One seller said "we're stuck" another "never been a great partner but you have to work with them." Amazon poaches best-selling items.

Cicilline: ex of apparel company. Business started selling unique item, making $60k/year on it. One day Amazon listed same product, sales went to $0 overnight.

Cicilline: 3P seller: "Amazon strings you along for a while... we called it Amazon heroin. But ultimately this would be your downfall." This is one of your partners comparing you to a drug dealer!

Bezos: I just don't recognize that. We made tough decision to bring in 3P sellers.
(look 3P sellers are mistreated, the evidence is overwhelming.)

Cicilline: isn't it a conflict of interest to compete with the 3P sellers when you set the rules of the game?
Bezos: I don't think so. The consumer makes the decisions of what to buy.
(they only see what Amazon wants them to see)

Cicilline: can you tell me where data collection policy was violated? Why should 3p seller list product on Amazon if they can be undercut by data you take from them?
Bezos: But we have a policy!
Cicilline: You couldn't assure us that the policy isn't violated!

Bezos: Well we're looking at that.
Cicilline: Data we collected shows that Amazon only interested in building its market power. Congress must take action.

Sensenbrenner says Congress does a poor job of picking winners and losers. I have reached the conclusion that we don't need to change antitrust laws. The question is enforcement.
(the whitewash effort is on)

Sensenbrenner: Obama's FTC signed off on FB/Instagram.
(yes, absolutely, that's the whole problem)

Sensenbrenner is not wrong, the problem is enforcement. We need political will.

Sensenbrenner, approximately: this isn't Congress' job
(he's completely wrong about that. But he's right that Congress should press the regulators on their conduct)

Jayapal up, addressing Zuckerberg.
Citing damning emails where Zuck/Sandberg is talking about copying competitors.

Jayapal: How many competitors did FB copy?
Zuck: can't give a number.
Jayapal: Any estimates? Your team made a plan.
Zuck: we just want to build the best services

Jayapal: has FB ever threatened to clone products while trying to buy them?
Zuck: No
Jayapal: You are under oath.

Jayapal: what about IG and Facebook Camera?
Zuck: well we did try to compete?
Jayapal: Did you threaten IG's co-founder
Zuck: what do you mean by threaten?
Jayapal: In a chat you said FB was developing photo strategy. IG founder said it was a threat

Jayapal: Did you do this with other companies?
Zuck: I disagree with the characterization. I don't view convos as a threat?
Jayapal: IG cofounder said so. Did you warn Snap that you were cloning features?
Zuck: I don't remember.

Zuck trying to say FB just builds the best product.
Jayapal:When dominant platform tries to copy rivals, that's market power. Monetizing data and threatens rivals. These tactics reinforce FB's dominance, which you use in destructive ways. Impossible for new companies to flourish

My goodness that was good from Jayapal. Now Ken Buck talking about Amazon leveraging counterfeits to force companies into deals.

Buck gives example of a mic technology company. The company showed data to Amazon. Then Amazon cut off communication and copied the tech.

buck goes on too long, there's not enough time for questions.

Tim Cook taking the bold stand that forced labor is abhorrent.

Raskin relates 19th c. robber barons to 21st c. cyberbarons.

Raskin asking Bezos about Amazon holding up HBO Max on Fire until the company gets content. I wrote about this the other day.

Bezos: Hey it's just 2 large companies making an agreement
Raskin: But they stand in for hundreds of smaller companies. You're not just negotiating terms but trying to extract leverage.

Bezos: in general when 2 companies negotiate you ask for leverage it's fine
Raskin: But you're using control over access in order to obtain creative content you want. Conflict of interest. Converting power in 1 domain into power in another

Bezos: I'll get you some info
(more "I'll get back to ya")

Raskin: Does Amazon price Echo devices below cost?
Bezos: sometimes if there's a deal
Raskin: a lot of companies told us that
(again, admitting predatory pricing)

Raskin: is smart speakers a winner take all market?
Bezos: no. Speakers should answer to different wake words.
(interoperability?)

Raskin: when you bought Ring, you said you were buying "market position." If there's no lock-in effect, why is that valuable?
Bezos: Market position is valuable in any business.

Raskin: if I ask Alexa to play a song Prime Music is default?
Bezos: Yes
Raskin: if I say buy batteries I get Amazon batteries?
Bezos: I'm sure we do promote our own products.

More "conservative censorship" from Gaetz, but again, the problem the power. Let's say it's all true and Google's totally in the tank. The problem is they're the only game in town. If there was heavy search competition, a different story.

We now know there will be a third round of questioning.

Nadler talking about journalism in crisis and Google and Facebook's grabbing of practically all ad revenue.

Nadler talking about the pivot to video. This is an ENTIRE CHAPTER of Monopolized. FB said they were getting great stats on video and then it turned out they lied.

Zuck not saying he was sorry to journalists "who lost their jobs because of FB's deception)

Nadler: Does google use data in Chrome data for its advertising
Pichai: We do use data for improving products for our users
Nadler: That's a yes?
Pichai: We use data to show ads, but they can turn ads on or off.

In reality practically nobody turns the ads off

Nadler: FB and Google have gravely threatened journalism in the US. Now we hear they're making money on what news they let the American people see. This is a dangerous situation.