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Amazon shares fall amid Senate probe into China influence allegations
The inquiry centers on alleged third-party marketplace decisions, while Amazon is set to report second-quarter results on July 30 after the close.
Amazon shares slid about 4% in a single session after a Bloomberg report said Senate investigators are examining allegations of Chinese influence over the company’s third-party marketplace, according to Yahoo Finance. The investigation comes as Amazon prepares to deliver second-quarter earnings on July 30 after the market close.
According to the report cited by Yahoo Finance, Republican staff on the Senate Small Business Committee believe they have evidence suggesting some Amazon employees in China may have improperly influenced marketplace decisions involving third-party merchants. The allegations involve intermediaries allegedly paying for favorable treatment, including reversing account suspensions and helping sellers navigate Amazon’s marketplace policies.
Yahoo Finance noted that nearly 60% of products sold on Amazon come from third-party sellers, so concerns about marketplace oversight could draw additional regulatory scrutiny if findings move beyond fact-finding. At this stage, the inquiry is described as an investigation rather than an enforcement action, but investors appear focused on the potential for tighter oversight, operational changes, or financial penalties.
Despite the headline risk, Yahoo Finance said Amazon’s operating performance has remained strong. It pointed to AWS as a key growth driver, with AWS expanding 28% year over year in the first quarter, and to management’s second-quarter guidance of revenue between $194 billion and $199 billion, plus operating income of $20 billion to $24 billion.