Bloomberg Businessweek - USA (2019-11-25)

(Antfer) #1
◼ TECHNOLOGY Bloomberg Businessweek November 25, 2019

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thecompany’sBeltwayrelationshipsaren’twhat
theywerewhenCarneytookoverthepolicyshop
in2015,aftermorethanthreeyearsasPresident
BarackObama’ssecondWhiteHousepresssec-
retary.Carneywasfarfromthefirstgovernment
officialtodecampfora prominentpositioninthe
techindustry.Hisdeputy,Huseman,hadserved
asanattorneyfortheFederalTradeCommission
whenGeorgeW.Bushwaspresident.Duringthose
timestherewasa largelyfavorablebipartisanview
ofBigTech,andthegovernmentrarelychallenged
leadingcompaniesastheysnappeduprivalsand
expandedtheirfootprints.
Ata momentwhenAmazon’sbiggestconcern
seemedtobewhetherit wouldbeallowedtofly
deliverydronesalloverU.S.cities,hiringCarney
wasa signthatthecompanywasgettingserious
aboutlobbying.YetbytheendofCarney’sfirstyear
there,Bezos’personalfeudwithTrump,thena
long-shotcandidatefortheRepublicanpresiden-
tialnomination,hadintensified.Morerecently,
Amazon’spolicyregardingTrumphasbeento
ignorehisTwitteractivitywheneverpossiblewhile
workingtominimizefurtherdiscordwiththeWhite
House,saysa personfamiliarwiththematter.
Onmanymajorquestions,that’sworkedpretty
well.TheFTCdidn’tobjecttoAmazon’s$13bil-
lionacquisitionofWholeFoodsMarketInc.in
2017.Foodstampscannowbespentongrocery
deliveryservicessuchasAmazonFresh.Andthe
corporatetaxcutsinTrump’s 2017 taxlawgreatly
benefitedAmazon.ThisMay,Huseman,onbehalf
oftheInternetAssociation,oneofSiliconValley’s
primarytradegroups,presentedIvankaTrump
withtheInternetFreedomAward,dedicatedto
recognitionforpublicservice.

Still,Trump’spublichostilitytowardBezos
mightwellhavebeena factorinAmazon’sloss
ofthe$10billion contract for the Joint Enterprise
Defense Infrastructure, or JEDI. (Yes, as in Star
Wars.) While the Pentagon has denied that such
a grudgeplayeda roleinitsdecisionandsaidits
procurementdepartmentis insulatedfrompolitics,
Trumplastsummerdirectedhisthen-secretary
of defense, Jim Mattis, to “screw Amazon” out of
the JEDI contract, according to Holding the Line:
Inside Trump’s Pentagon with Secretary Mattis, a
book by the secretary’s former speechwriter, Guy
Snodgrass, published in late October. And the pres-
ident doesn’t exactly have a sterling track record
of separating government matters from personal
ones, as several career civil servants have been tes-
tifying in impeachment hearings on Capitol Hill.
An Amazon spokesman says the procurement
process was clearly tainted by animus. Amazon’s
protest, to be filed with the U.S. Court of Federal
Claims, is expected to hold up implementation
of Microsoft’s cloud systems, unless the Defense
Department can make a compelling national secu-
rity case to keep things moving. As the company
awaits further decisions by the court, its execu-
tives aren’t making much of an effort to avoid the
appearance of bias, either. Carney was recently a
named co-host at a fundraiser for Democratic pres-
idential candidate Joe Biden, though the Amazon
spokesman didn’t attend the event. On Nov. 15,
Amazon’s general counsel, David Zapolsky, hosted
his own Biden fundraiser. �Eric Newcomer and
SpencerSoper,withNaomiNix

Viral‘SmartBombs’


Vs.theSuperbugs


● Drugmakersareinvestingin phagetherapyas
a possibleanswertoantibioticresistance

THE BOTTOM LINE Amazon has done well in the Trump era but
has struggled this year to win some key political battles, where its
name and CEO have been liabilities.

Joel Grimwood was dying. A bacterial slime
impervioustoantibioticswasgrowingona life-
sustaining heart implant, infecting his sternum, poi-
soning his blood, and slowly consuming his chest
tissue. His implanted heart pump was meant to be a
short-term solution while he waited for a heart trans-
plant but, once it was infected, it couldn’t be safely
removed. The operation would risk pushing the
maelstrom of Staphylococcus aureus bacteria more
directly into his system, which could kill him much

faster. Four hospitals had denied Grimwood a trans-
plant because of the infection, which had required
some 40 surgical scrapings over three years and left
himwitha Keylime-sizeopenwoundinhischest.
Finallyhisphysiciansoptedfora differentstrategy:
turningbacteria-eating viruses loose inside of him.
Just a week after the daily treatments began last
year, Grimwood says, he felt better and more ener-
getic, and the staph seemed to be on the defen-
sive. “It was like it ate the bacteria,” he says of the
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