by BeauHD on (#61FD8)
In an effort to settle accusations by regulators that the company engages in anti-competitive behavior, Amazon leaders have discussed abandoning its private-label "Amazon Basics" business altogether. This follows previously reported concessions including giving more visibility to listings from multiple sellers for a given product to prohibiting the company from using any non-public data from Amazon sellers to boost the company's own retail business. Recode reports: At least as recently as last year, several top Amazon executives, including its current worldwide retail CEO Doug Herrington and its general counsel David Zapolsky, expressed a willingness to make this different but significant change if it meant avoiding potentially harsh remedies resulting from government investigations in the US or abroad, according to a source with knowledge of the discussions. Amazon's private-label business includes homegrown brands like Amazon Basics, which sells everything from garbage bags to batteries to office chairs, as well as the clothing line Amazon Essentials. The business line also includes brands that don't carry the Amazon name, such as the paper-goods label Presto, the food brand Happy Belly, and the fashion line Goodthreads. Such a concession would not apply to the company's own gadget lines, including Kindle, Echo, and Fire TV devices. Amazon's use of private-label brands has come under fire from politicians and regulators not merely because they exist, but because of the data Amazon leverages to create them and the tactics it uses to favor them in search results on its shopping website and app. "There was a strong consensus that this could be a viable option if the company was ever pressed into a position where it had to negotiate a settlement," the source told Recode. This person requested anonymity because they were not authorized to disclose internal discussions. [...] The conversations at Amazon around abandoning its private labels occurred on and off for several years as scrutiny of the business line heightened, the source said, with executives expressing a desire to keep this potential remedy under wraps so that it could come across to regulators as a major concession. Leaders in favor of such a decision believed that Amazon had a right to sell private-label brands as many retailers do, but that the business was not strategically crucial enough to defend in the face of more severe potential remedies sought by antitrust enforcers. When a company like Amazon offers such a concession, it does so with the hope of closing down any current investigations. Amazon spokesperson Betsy Harden denies the report, saying the company continues "to invest in this area, just as our many retail competitors have done for decades and continue to do today."Read more of this story at Slashdot.