AMZN Stock Drops Nearly 2% After-Hours — Senate Panel Reportedly Probes Amazon Over Alleged Chinese Influence

A U.S. Senate panel has launched an investigation into Amazon regarding alleged negligence and Chinese influence within its online platform.

• Republican staff on the Senate Small Business Committee are probing whether Amazon allowed Chinese influence to compromise its marketplace operations. 
• The inquiry stems from reports of an international bribery network where Amazon employees in China allegedly accepted payments to grant favors to sellers. 
• The investigation adds to Amazon's growing list of regulatory hurdles, which already include federal antitrust lawsuits and deceptive practice claims. 

A U.S. Senate panel is investigating Amazon.com Inc. (AMZN) over allegations that the e-commerce titan allowed China to exert undue influence over its online marketplace.

Republican committee staff members on the Senate Small Business Committee have been examining potential "negligence related to Chinese influence" and reported uncovering "compelling evidence," Bloomberg reported, citing internal correspondence and interviews. 

Amazon stock dropped about 2% after-hours on Wednesday. 

Bribery Schemes And Internal Favoritism

The congressional inquiry gained momentum following a Bloomberg report detailing an international illicit network. In that scheme, Amazon workers based in China allegedly accepted bribes from merchants in exchange for administrative favors and competitive advantages on the site.

Investigating staff reached out to independent merchants, including Jack Nekhala, a Staten Island inventor who produces mattress sheet fasteners. Nekhala said he shared recordings with investigators of conversations with a broker offering access to Amazon employees in China who could manipulate seller accounts for a fee. Committee researchers showed particular interest in how internal staff in China could sway marketplace dynamics, according to Nekhala.

Independent Merchants Form Bulk Of Goods Sold On Amazon

Independent third-party merchants generate around 60% of all goods sold on Amazon's platform. For years, small business owners have raised concerns regarding unexpected account suspensions, arbitrary penalties, and poor support from the tech giant.

Due to difficulty resolving issues through official channels, some merchants have turned to third-party intermediaries to bribe company insiders to lift suspensions or restore listings, the report stated.

Expanding Regulatory Pressure

An Amazon representative declined to provide immediate comment, and press officers for the Senate Small Business Committee did not immediately respond to requests for comment by Bloomberg.

The inquiry expands federal scrutiny of Amazon beyond domestic market power. The retail giant is already defending itself against separate regulatory challenges, including antitrust lawsuits and enforcement actions over deceptive business tactics—allegations the company has consistently denied.

AMZN Stock: Retail View 

Retail sentiment on Amazon was ‘bullish’ with ‘high’ message volumes. Retail traction on the stock has been elevated considering Alphabet’s Q2 results released after market hours on Wednesday, where Alphabet raised its 2026 capex outlook. 

Retail investors are closely tracking hyperscaler spending, judging the revenue outcome from bloated spending numbers and to figure out where the next leg of AI winners is likely to emerge. 

AMZN stock has gained 5.6% year-to-date. 

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