POLITICS Bloomberg Businessweek March 11, 2019
35THE BOTTOM LINE With multiple multibillion-dollar government
contracts on the line, Amazon is vastly outspending most of its
rivals in Washington but facing stiff opposition nonetheless.business in Washington, one major irritant has
arisen: President Donald Trump. Judging from his
tweets, he considers Bezos his biggest corporate
nemesis. This could be in part because of Bezos’
personal ownership of the Washington Post, whose
news articles often depict a White House in dis-
array and whose opinion pages relentlessly criti-
cize the president. In July, Trump tweeted that the
newspaper was an “expensive lobbyist” for Amazon
and that the online retailer had a “huge antitrust”
problem. Owning the newspaper has indeed made
Bezos’ business affairs more complex, as he wrote
in a highly personal Medium blog post published
on Feb. 7. In the same post, he alleged that National
Enquirer parent company American Media Inc. was
threatening to publish embarrassing photos of him,
including nude selfies, for political reasons.
While they’ve been personally embarrassing
for Bezos, neither the scandal nor Trump’s broad-
sides have done any real damage to Amazon.
Yet a new generation of regulators and lawmak-
ers in Washington could. Some openly ponder
whether the e-commerce giant is too big and too
powerful. “Amazon figures quite prominently in
modern debates about U.S. antitrust law,” says
William Kovacic, a professor at George Washington
University Law School. “In academic articles, they’re
often held out as an example of how U.S. antitrust
policy has to be more aggressive.”
While the U.S hasn’t challenged Amazon’s busi-
ness practices, “I have to think some people are
thinking about it,” says Amy Webb, founder of the
Future Today Institute, which studies technology
and the workforce. Amazon has been knocking
on the doors of Washington’s antitrust watchdogs.
Several company executives—including Huseman
and David Zapolsky, Amazon’s general counsel—
made visits to the Federal Trade Commission in
May, just after the Senate confirmed Trump’s com-
missioner nominees, according to records obtained
through the Freedom of Information Act.
Such contacts could prove crucial to protecting
Amazon’s business as the FTC ramps up its scru-
tiny of tech companies. Chairman Joe Simons held
a series of public hearings last year to examine anti-
trust policy, including whether technology compa-
nies are undermining competition. On Feb. 26 he
created a task force to investigate industry mergers
that could be unwound if they harm consumers.
Facebook Inc.’s 2012 purchase of Instagram is per-
haps the most high-profile example of an acquisition
that critics argue should never have been approved,
but Amazon has done plenty of its own deals, too.
Amazon has begun hiring well-connected
government lawyers and congressional aides,
including Bryson Bachman, a former senior coun-
sel to the Department of Justice’s antitrust chief,
Makan Delrahim. With numerous House commit-
tees now chaired by black Democrats, including
those on financial services, education, homeland
security, government oversight, and technology,
Amazon has also hired a stable of minority lobby-
ists. These include LaDavia Drane, a former staff
chief for Representative Yvette Clarke of New York, a
Congressional Black Caucus member, and Troy Clair,
who was the chief of staff for Representative G.K.
Butterfield of North Carolina, a former CBC chair-
man. After pressure from the CBC to increase its
board’s diversity, Amazon on Feb. 4 added Rosalind
Brewer, the chief operating officer of Starbucks
Corp. and a former Walmart Inc. executive.
Soon Amazon will vastly expand its physical pres-
ence in the capital with a new headquarters across
the Potomac River. If the company follows through
with plans to hire more than 25,000 people, it would
become the region’s largest private-sector employer,
adding to the 7,500 people who work at an Amazon
cloud computing unit near Dulles International
Airport. Bezos himself plunked down $23 million
for two adjacent properties in the district’s fashion-
able Kalorama neighborhood in 2016, which he’s
now combining into a single mansion to serve as an
East Coast base.
Lately, Bezos has been busy courting
Washington’s elite. In September he roused an audi-
ence at the Economic Club of Washington with jokes
and commentary about Trump and the role of the
Postin a democracy. In late January he attended an
8 a.m. breakfast at the invitation of Don Graham,
the former Washington Post owner, to hear Warren
Buffett and Alan Greenspan talk about markets and
the economy.
The day before, he’d entertained guests at the
exclusive Alfalfa Club dinner, an invitation-only,
black-tie soiree for politicians, diplomats, and cor-
porate executives. Buffett and Greenspan were both
there. Bezos closed out the evening with a skit in
which he rolled a cart onstage carrying Amazon
packages, one of which, he announced, con-
tained the “superheroes of the Bible” pajamas that
Vice President Mike Pence had ordered. Another
was a DVD of “How to Survive the Coming Global
Depression” for Federal Reserve Chairman Jerome
Powell. Then he said, “Oh, wait. This one’s for me.
It’s a bill of sale saying apparently I now own the
National Enquirer.” —Naomi Nix, with Bill Allison,
David McLaughlin, and Mehr Nadeem○ Amazon wants to
power a government
purchasing portal, a
potential market of$50b