A Wall Street Journal survey reveals that online sales giant Amazon, has changed its algorithm to favor its own products in the search results of its website. The company firmly denies these accusations.
Relying on anonymous testimonials from employees and lawyers at Jeff Bezos’ firm, the Wall Street Journal claims that these algorithm changes would have been made by the end of 2018. The overall goal of the initiative would have been to promotion of the most profitable products.
The Amazon sales team reportedly compared this measure to that of several grocery stores that promote their private label and offer domestic branded products.
This is a decision that would have taken place to the dismay of the company’s lawyers, who raised concerns about its anti-competitive nature. Remember that Amazon holds about 38% of the market share of online sales.
In a statement provided to the Gizmodo site , Amazon said it explained to the Wall Street Journal that its investigation was not factual, but that [the newspaper] still went ahead with the publication of the article .
“The fact is that we have not changed our search criteria to take profitability into account. We showcase the products that customers want, whether they are from our brand or those of our partners,” the company said.
Amazon has also told Gizmodo that its homemade products represent only 1% of its sales.
This comes at a time when Amazon is being investigated for its anticompetitive practices in Europe, where regulators argue that the company is abusing its dual role as a merchant and an ecommerce business .
The US Department of Justice has also launched a major investigation into the anti-competitive practices of the web giants, including Amazon, in July.
Brook Bufphlin helped bring hw4all from a-weekly newsletter to a full-fledged news site by creating a new website and branding. She continues to assist in keeping the site responsive and well organized for the readers. As a contributor to hw4all, Brook mainly covers mobile news, marketing and industry updates.