In a recent development regarding the FTC's antitrust lawsuit against Amazon, FTC lawyers have submitted a claim alleging that executives at the tech giant used Signal's feature of disappearing messages to get rid of crucial evidence. The lawsuit focuses on Amazon's supposed development of a secret pricing algorithm named "Project Nessie," which could have generated more than $1 billion in extra profits, making it a matter of considerable interest.
According to a report from The Washington Post, owned by Amazon's founder Jeff Bezos, Amazon is among several companies accused of using encrypted messaging apps like Signal, known for permanently erasing messages. This practice of employing encrypted messaging platforms has drawn comparisons to past legal disputes, including Sam Bankman-Fried's fraud trial and Google's legal battle against Epic Games, where deleted messages became contentious issues.
The recent FTC filing presents screenshots of a Signal conversation between two Amazon executives, where they exchanged messages such as "Are you feeling encrypted?" before activating the disappearing messages feature. The filing reveals notable Amazon figures like Bezos, current CEO Jassy, general counsel Zapolsky, former worldwide operations CEO Clark, and other executives as Signal users. Bezos, described as a frequent Signal user, reportedly promoted the app, possibly influenced by a previous hacking incident involving his personal phone.
The FTC argues that Amazon's delay in instructing employees to retain messages sent through the app until more than 15 months after being informed of the investigation implies the probable destruction of relevant information. FTC lawyers are now requesting access to Amazon's preservation efforts to determine the extent of potential data loss. Despite previous demands for documents related to Amazon's instructions to employees concerning transient apps, the FTC claims that Amazon has mostly withheld the requested materials. If the court finds Amazon negligent in failing to keep essential data for the case, the company could face penalties, and if the court deems these actions intentional, the repercussions for Amazon could intensify.