Amazon under Senate investigation over China influence concerns - report

Amazon (AMZN) is facing a U.S. Senate Small Business Committee investigation over allegations that the company allowed Chinese influence to affect its online marketplace, according to a Bloomberg report, citing people interviewed as part of the probe.

The Republican staff has been probing "Amazon negligence related to Chinese influence and have found compelling evidence," according to an email from a committee researcher.

The investigation adds to Amazon’s (AMXN) regulatory challenges, including antitrust allegations and claims of deceptive business practices, which the company has denied.

The probe follows a previous report on an alleged bribery market involving Amazon (AMZN) employees in China selling favors to merchants seeking advantages on the platform.

Jack Nekhala, a Staten Island inventor, spoke with committee researchers after the report was published. He said he recorded conversations with an intermediary who offered to use Amazon employee connections in China to help him in exchange for payment. Nekhala said investigators were interested in how Amazon employees in China could influence the marketplace, the report said.

Third-party sellers account for about 60% of products sold on Amazon. Some sellers have complained for years about unfair suspensions and difficulties resolving issues, leading some to seek help from company insiders to reverse penalties.