Amazon Recruits Former FTC Staffers Ahead of Antitrust Battle
Amazon is reportedly hiring a number of former Federal Trade Commission (FTC) officials as it prepares for an upcoming antitrust battle with the agency. The e-commerce giant, which is facing allegations of pressuring third-party sellers to use its logistics network, has already recruited around a dozen former FTC employees. According to Jeff Hauser, founder of the Revolving Door Project, hiring former FTC officials is a strategic move to gather intelligence. Some of the officials Amazon has poached include Brian Huseman, who manages Amazon’s policy shop, Amy Posner, who is now senior corporate counsel, and Sean Pugh, who is a senior manager in public policy.
Insiders suggest that Amazon’s hiring spree has been facilitated by the alleged management style of FTC Chair Lina Khan. Several disgruntled staffers have left the agency, accusing Khan of being a “tyrant” with an “abusive” approach. Critics claim that Khan has disregarded career staffers and spent less time meeting with them compared to previous FTC chairs. William Kovacic, a professor at George Washington University and former FTC chairman, explained that industries feeling threatened often hire from regulatory agencies. However, he noted that staffers who feel unappreciated are more likely to leave. Kovacic added that Khan’s leadership has made FTC employees feel undervalued.
Despite the alleged discontent within the FTC, Amazon’s extensive recruitment efforts highlight its seriousness in addressing the agency’s threats. The FTC has already filed three lawsuits against Amazon and is expected to bring an antitrust suit aimed at breaking up the company in the coming weeks. Kovacic stated that while this does not guarantee victory for Amazon, it provides them with valuable insight into the inner workings and internal politics of the FTC. By hiring former regulators, Amazon gains knowledge about key players, decision-makers, agency dynamics, resource allocation, and enforcement attitudes.
Jeff Hauser of the Revolving Door Project believes that the FTC has become a “beaten down institution” that attracts individuals who are content with a passive consumer regulator. Hauser suggests that this sheds light on the lack of shared enthusiasm for implementing the law among FTC employees. Last week, the FTC sued Amazon over allegations of deceiving consumers into unknowingly enrolling in Amazon Prime and making it difficult for them to cancel subscriptions.
As the FTC prepares for its antitrust suit, speculation arises regarding potential outcomes. Some believe the agency may seek to force a spinoff of Amazon Web Services, divest its logistics business, or unwind major acquisitions such as MGM and Whole Foods. It is important to note that there are legal restrictions preventing individuals working on an FTC case against Amazon from directly joining the tech giant. These employees must take garden leave before transitioning to Amazon.
Other former FTC staff members who have joined Amazon include Andi Arias, Meghan Iorianni, Brian Berggren, Elisa Kantor Perelman, Stelios Xenakis, Pallavi Guniganti, Aaron Ross, Joseph Breedlove, Natasha Sivananjaiah, and Scott Fitzgerald. Amazon declined to comment on the matter.