The Controversies and Challenges Amazon Faces: Data, Competition, and Labor

While Amazon’s rise is a story of innovation and growth, it is also marked by significant controversies. One of the most troubling issues is the misuse of data from third-party sellers, with thousands of employees reportedly having unauthorized access to sensitive information, raising serious ethical questions.

Amazon’s aggressive tactics include predatory pricing, exemplified by its battle with Quidsi, where it slashed diaper prices by 30% to force a competitor out of business. These strategies, while effective, have drawn accusations of unfair competition and monopoly abuse.

Labor issues are equally prominent. Amazon’s warehouses are known for demanding conditions, with high injury rates and intense pressure. Unionization efforts by workers seeking better pay and safety have met strong resistance from the company. The COVID-19 pandemic highlighted these tensions, as Amazon hired hundreds of thousands to meet demand but faced criticism over workplace safety.

Regulators worldwide have taken notice. The Federal Trade Commission, Congress, and international bodies have launched investigations and lawsuits challenging Amazon’s business practices. These legal battles are part of a larger conversation about how to regulate tech giants whose influence spans multiple sectors.

This blog integrates detailed accounts from 'The Everything Store' and recent news to provide a balanced view of the challenges Amazon faces and the implications for the future of business and society.

Sources: 1 , 2