Many users have long suspected, and joked, about their phones listening to them. According to a CMG marketing document and blog post, that’s exactly what the company is doing. CMG admits to listening to individuals’ conversations and using AI to deliver relevant ads in response to those conversations.

The Deleted Blog Post

CMG calls its service “Active Listening.” In a deleted blog post, that is available via web archives, the company describes the feature in a way that would creep any normal person out.

Imagine a world where you can read minds.

One where you know the second someone in your area is concerned about mold in their closet, where you have access to a list of leads who are unhappy with their current contractor, or know who is struggling to pick the perfect fine dining restaurant to propose to their discerning future fiancé.

This is a world where no pre-purchase murmurs go unanalyzed, and the whispers of consumers become a tool for you to target, retarget, and conquer your local market.

It’s not a far-off fantasy-it’s Active Listening technology, and it enables you to unlock unmatched advertising efficiency today so you can boast a bigger bottom line tomorrow.

The blog post details how the feature works.

Our technology is on the cutting edge of voice data processing. We can identify buyers based on casual conversations in real time. It may seem like black magic, but it’s not-it’s AI. The growing ability to access microphone data on devices like smartphones and tablets enables our technology partner to aggregate and analyze voice data during pre-purchase conversations.

The result? Advertising efficiency and timing taken to a new level. We set specific keywords relevant to your product and service so we know who needs you, why they do, and where we can target them. With this unprecedented understanding of consumer behavior, we can deliver personalized ads that make your target audience think: wow, they must be a mind reader.

Interestingly, CMG even addresses the legality of the feature, saying the fine-print buried in multi-page user agreements makes Active Listening legal.

We know what you’re thinking. Is this even legal? The short answer is: yes. It is legal for phones and devices to listen to you. When a new app download or update prompts consumers with a multi-page terms of use agreement somewhere in the fine print, Active Listening is often included.

The Leaked Document

In a document that was leaked to 404 Media, CMG charges clients $100 day for weekly data sets targeting a 10-mil radius, and $200 a day for data sets targeting a 20-mile radius. Under a section labeled “The power of voice (and our devices’ microphones),” the company says the following:

• Smart devices capture real-time intent data by listening to our conversations
• Advertisers can pair this voice-data with behavioral data to target in-market consumers
• We use AI to collect this data from 470+ sources to improve campaign deployment, targeting and performance
• You reach your potential customers before your competitors

CMG goes on to say that “consumers leave a data trail based on their conversations” and that “processing voice data with behavioral data identifies an audience who is ‘ready-to-buy.'”

Interestingly, the document says CMG is a Google Premier Partner, Amazon Advertising partner, and a Facebook marketing partner, a concerning claim given how much data those three companies have access to and how widespread their apps are.

According to Futurism, the alleged partners are quickly distancing themselves from the company. Google said has removed CMG from its Partners Program and Meta is reviewing CMG to see if it violates the social media company’s guidelines. Amazon’s response was even stronger, saying it has never worked with CMG.

The Need for Comprehensive Privacy Rules

CMG’s admission underscores the need for comprehensive privacy rules that all companies, organizations, and agencies must abide by. With the proliferation of smartphones, tables, and virtual assistants, devices people use throughout the day—for both personal and work needs—collect massive quantities of data.

What’s more, CMG’s acknowledgment that fine print, buried in multi-page user agreements, is the legal authorization for its creepy activity illustrates how much the deck is stacked against users concerned with their privacy. Companies have increasingly been making license and user agreements so long, and written in difficult-to-understand legalese, that it makes it extremely difficult for the average user to know exactly how their data will be used, or what permissions they are surrendering.

Unfortunately, without clearly defined, legally binding privacy rules, companies like CMG will continue to take advantage of users, abusing their trust, and spying on them.

The Meteoric Rise of “New Heights”

Launched in 2022, “New Heights” quickly captured the attention of listeners with its unique blend of NFL insights, personal anecdotes, and candid conversations between the two brothers. The show’s rise to prominence was further fueled by Travis Kelce’s high-profile relationship with pop star Taylor Swift, which introduced a whole new demographic to the podcast. As the podcast gained traction, it became a symbol of the shifting dynamics in the podcasting industry, where celebrity-hosted shows are pulling in massive audiences and even more significant advertising dollars.

“The Kelces’ emergent success over the past two years is emblematic of the shifting podcast landscape,” noted Anne Steele of the Wall Street Journal. “In a world where a few blockbuster shows are attracting the biggest audiences, ‘New Heights’ has risen to the top, exemplifying how a mix of sports, pop culture, and personal stories can captivate millions.”

The $100 Million Deal: What It Entails

The deal with Wondery, which runs for three years, is one of the largest podcast deals to date, putting the Kelce brothers in the company of other podcast giants like Joe Rogan and Alex Cooper. According to sources familiar with the agreement, Wondery will gain exclusive rights to distribute and sell ads for all audio and video episodes of “New Heights.” This includes access to the show’s back catalog and the ability to create international audio adaptations, further expanding the podcast’s global reach.

“We couldn’t be more excited to team up with Wondery for the next phase of ‘New Heights,’” the Kelce brothers said in a statement. “We love this show, and the fanbase that has grown with us over the last two seasons. Wondery understands the shared vision and will offer a wealth of experience and resources to take us to ‘New Heights’! We are going to create some groundbreaking moments together through this partnership.”

The deal also includes a first-look option for new consumer products the brothers may develop, as well as opportunities for live events and other collaborative projects. Episodes will continue to be available across platforms like Spotify, Apple Podcasts, YouTube, and Amazon Music, with Wondery+ subscribers gaining access to ad-free listening and exclusive content.

The Podcast Boom: A Cultural Phenomenon

The Kelce brothers’ deal is just the latest in a series of high-profile podcast agreements that highlight the medium’s explosive growth. According to Edison Research, “New Heights” ranked No. 4 on the list of top U.S. podcasts in the second quarter of 2024, a significant achievement in a crowded market. This popularity is not just a reflection of the brothers’ star power but also of the broader appeal of podcasts as a medium that blends entertainment, information, and intimacy in a way that few other formats can.

If you listen to the Kelce brothers podcast you need to reevaluate your life https://t.co/cBn7w5oxvS

— FalcDawg (@fdtakeover) August 27, 2024

“‘New Heights’ on the surface is a sports podcast, and sports is such a well-listened-to category,” said Wondery CEO Jen Sargent. “But it’s become a cultural phenomenon—they’re in that cultural zeitgeist.”

The Kelce brothers are not the only ones benefiting from this trend. The podcast industry as a whole has seen a surge in investment, with platforms like Spotify, Amazon, and SiriusXM competing for exclusive content deals. Last month, Wondery signed comedian Dax Shepard to an $80 million deal for his podcast “Armchair Expert,” and Alex Cooper secured a deal valued at over $100 million with SiriusXM for her hit podcast “Call Her Daddy.”

The Risks and Rewards of Big Podcast Deals

While the headline-grabbing sums of these deals reflect the potential of podcasts to generate substantial revenue, they also come with significant risks. The podcast industry has experienced a boom-and-bust cycle in recent years, with some deals proving to be less profitable than anticipated. Distributors like Wondery are now incorporating more protections into their contracts, ensuring that they have multiple revenue streams, including ad sales, subscriptions, and merchandise.

The Kelce brothers’ deal with Wondery is structured to maximize these opportunities. In addition to the ad revenue generated from traditional podcast platforms, the deal includes provisions for merchandise development and live events, which could provide substantial additional income. The podcast’s existing fanbase, known as the “92%ers,” is likely to be a crucial factor in the success of these ventures.

A Bright Future for the Kelce Brothers

As they embark on this next chapter, the Kelce brothers are poised to continue their reign at the top of the podcasting world. Jason Kelce, who recently retired from professional football after 13 years with the Philadelphia Eagles, has joined ESPN’s “Monday Night Countdown,” while Travis Kelce is set to begin another NFL season with the Kansas City Chiefs. Both brothers have also ventured into other media projects, with Travis hosting a 20-episode season of “Are You Smarter Than a Celebrity?” for Amazon Prime Video.

Kelce Brothers Sign $100M+ Deal for Their ‘New Heights’ Podcast https://t.co/AR5bTaj87N via @thedailybeast

Why would amazon spend money on to filthy alcoholics.

— Eed Ajd (@EedAjd79682) August 27, 2024

Their diverse media engagements, combined with the ongoing success of “New Heights,” suggest that the Kelce brothers are not just football stars but also savvy media entrepreneurs. As they continue to build their brand, their partnership with Wondery will likely open up new avenues for content creation and audience engagement.

The Podcasting Gold Rush

The Kelce brothers’ deal is a sign that the podcasting gold rush is far from over. With major platforms like Amazon and Spotify continuing to invest heavily in exclusive content, the industry is set to grow even further. For creators, this means more opportunities to monetize their content and reach wider audiences. For listeners, it means access to an ever-expanding array of high-quality shows that cater to every interest and taste.

As the Kelce brothers prepare to launch the third season of “New Heights,” their $100 million deal with Wondery stands as a testament to the power of podcasts in today’s media landscape. It’s a reminder that in the digital age, the microphone is mightier than ever.

“Podcasts are hot, hot, hot,” said media analyst Sarah Perez. “The Kelce brothers’ deal is just the latest proof that audio content is a goldmine, and we’re only scratching the surface of what’s possible.”

The Echo Show 8 Photos Edition doubled as a digital picture frame, giving users the ability to display their photos indefinitely, as long as they were subscribed to the PhotoPlus service. Unfortunately, Amazon is canceling those subscriptions, and effectively killing the only real reason to buy the Echo Show 8 Photos Edition over the standard Echo Show 8.

The company announced the change in an email to subscribers:

Dear PhotoPlus customers,

We’re writing to inform you that starting on 09/23/2024, we will end support for the PhotoPlus subscription. PhotPlus makes photos the primary home screen content you see on your Echo Show 8 and includes 2 GB of storage with Amazon Photos.

We will automatically cancel your PhotosPlus subscription on 09/12/2024 — you do not need to take any action. You can continue enjoying the benefits of PhotosPlus until 09/12/2024.

After your subscription period ends, photos will no longer be the primary home screen content on your Echo Show 8. However, you can continue to use the 25 GB of Amazon Photos storage.

To manage the content shown on your Echo Show 8 home screen, navigate to Settings > Home Content.

As the email points out, a person’s photos will no longer be the primary content displayed on the home screen. Instead, ads will be displayed after three hours.

Amazon has made no secret of the fact that it is trying to monetize its various devices and services as the company looks to cut costs. PhotoPlus evidently did not have enough subscribers to justify the costs, and the company was clearly unwilling to spend any more in an effort to boost the user base.

Project Kuiper is Amazon’s answer to SpaceX’s Starlink, a constellation of low Earth orbit satellites designed to deliver broadband internet access. The company’s building at the Kennedy Space Center serves as a staging area where satellites are paired with rockets before being launched into space. Amazon committed to building a $120 million building at the Space Center in July 2023, and is now increasing that investment with the addition of a secondary support building.

This 42,000-square-foot building will provide additional space to process and store flight hardware ahead of launch, allowing for a regular cadence of missions to deploy Project Kuiper’s 3,232-satellite constellation. The expansion will be adjacent to the existing 100,000-square-foot structure at the satellite processing facility. It is another example of Amazon’s partnership with Space Florida and growing commitment to the state’s space economy.

“Expanding investments in Project Kuiper’s infrastructure at Space Florida’s Launch and Landing Facility not only reinforces our commitment to delivering reliable broadband connectivity to unserved and underserved communities worldwide, but also strengthens Florida’s position as a hub for space innovation and job creation,” said Brian Huseman, Amazon’s vice president for public policy and community engagement. “We extend our sincere appreciation to Governor Ron DeSantis, Lieutenant Governor Jeanette Nuñez, and Space Florida CEO Rob Long for their leadership, and look forward to helping pave the way for a more connected future.”

Amazon says the new building will have temperature-controlled storage, maintenance bays, air load rigging capabilities, and multipurpose workspaces. The new building is slated to be finished in 2025 and will create new full-time job opportunities.

“We are excited to expand our operations at the Kennedy Space Center with this new facility,” said Steve Metayer, vice president of Project Kuiper production operations. “This investment underscores our commitment to Project Kuiper as we work towards providing high-speed, low-latency broadband internet to communities around the world. We’re proud of our continued partnership with Space Florida, and look forward to adding more talent to our team at Cape Canaveral.”

“I am thrilled that Amazon has chosen to deepen its investment in Project Kuiper at Space Florida’s Launch and Landing Facility,” said Lt. Gov. Nuñez. “This decision is a clear indicator of Florida’s unbeatable location and world-class infrastructure. Through this partnership, we will continue to assert our leadership in the global space economy.”

The Sound of Progress—or Disturbance?

“It sounds like a giant hive of bees,” remarked John Case, a College Station resident, summing up the experience shared by many in the community. This comparison to an ominous swarm has become a common refrain among those living near Amazon’s drone launch facility. The drones, which weigh about 80 pounds and travel at speeds up to 60 miles per hour, are part of Amazon’s broader strategy to revolutionize last-mile delivery. However, as the company looks to expand the service, the noise issue has become a significant point of contention.

College Station Mayor John Nichols acknowledges the benefits of hosting such a cutting-edge program but also recognizes the challenges it brings. “There are growing pains, but we’re glad Amazon chose our city to try it out,” Nichols said. However, he also stressed the need for a solution that balances innovation with the community’s quality of life. “The solution is for them to identify a quieter drone and find a location in the community that will better insulate the noise they are going to produce.”

Community Pushback and Amazon’s Response

The concerns of College Station residents are not new to the world of drone delivery. Similar complaints have been lodged in other test areas, such as in parts of Australia where Alphabet’s Wing drones have been in operation. The common issue is the high-pitched buzzing sound, which many liken to the relentless noise of a chainsaw or a swarm of bees. In College Station, these complaints have been significant enough to prompt local officials to request a delay in Amazon’s planned expansion of the drone program.

Amazon’s delivery drones become the scourge of Texas town: ‘It sounds like a giant hive of bees’ https://t.co/55C6zR7uJM pic.twitter.com/oUSVvRF3ZI

— New York Post (@nypost) August 19, 2024

In a letter to the Federal Aviation Administration (FAA), Mayor Nichols highlighted the community’s frustration. “Due to the level of concern from residents, the City would ask to delay the increase in service levels relating to the number of deliveries, as well as the expanded operation days and hours, until additional noise mitigation efforts are implemented by Amazon Prime Air,” Nichols wrote. The city’s tests on the noise levels produced by the drones found them to range between 47 and 61 decibels—comparable to the hum of a dishwasher, but far more intrusive when experienced outdoors.

Amazon, for its part, has been quick to respond to the outcry. “We appreciate the community of College Station and take local feedback into account wherever possible when making operational decisions for Prime Air,” said Sam Stephenson, an Amazon spokesperson. The company has also announced plans to introduce a new drone model, the MK30, which is expected to be about 40% quieter than the current drones. “We’re proud of the thousands of deliveries we’ve made and the hundreds of customers we deliver to,” Stephenson added, emphasizing the program’s success in meeting consumer demands.

The Future of Drone Delivery in College Station

Despite these efforts, the question remains whether quieter drones will be enough to placate the community or if more drastic measures, such as relocating the launch facility, will be necessary. The idea of moving the drone operations farther from residential areas has been floated as one potential solution, but this could complicate logistics and reduce the efficiency that Amazon aims to achieve with its drone program.

Adding another layer of complexity to the situation is the uncertainty surrounding the future of the program in College Station. Reports suggest that Amazon’s lease on its facility may not be renewed after it expires in September 2025, raising the possibility that the company might relocate its operations entirely. For some residents, this could be a welcome relief, but for others, particularly those who have benefited from the convenience of drone deliveries, it might be a disappointment.

The Broader Implications

The noise complaints in College Station are not just a local issue; they are indicative of the broader challenges that drone delivery programs face as they seek to scale. While the technology holds tremendous potential for revolutionizing logistics and reducing carbon emissions from traditional delivery vehicles, it also raises questions about noise pollution, privacy, and airspace regulation.

As drone delivery moves closer to becoming a mainstream service, companies like Amazon will need to address these concerns proactively. The experiences in College Station could serve as a valuable case study for other cities considering similar programs. “Drone delivery is a promising technology, but it’s not without its challenges,” said Bryan Woods, College Station’s city manager. “We need to find a balance between innovation and community impact.”

A Significant Leap Forward?

Amazon’s Prime Air program represents a significant leap forward in delivery technology, but its implementation in College Station underscores the importance of community engagement and the need for technological refinement. The company’s efforts to develop quieter drones and its willingness to consider relocating operations are steps in the right direction, but whether they will be enough to win over skeptical residents remains to be seen.

Will you be using Amazon's new drone delivery service, which Amazon claims "will create new jobs", and "help to reduce the impact of climate change on future generations"? pic.twitter.com/FiRJAIctSY

— Wide Awake Media (@wideawake_media) June 3, 2024

As Amazon continues to test and refine its drone delivery service, the lessons learned in College Station will likely inform how the company approaches similar challenges in other markets. For now, the drones will keep buzzing, and the conversation around their impact will continue to grow louder.

The Online Buzz: Comments and Concerns from X (Formerly Twitter)

As news of the noise complaints in College Station spread, the issue quickly became a topic of discussion on social media, particularly on X (formerly known as Twitter). Users from across the platform weighed in with a range of opinions, from support for Amazon’s innovative approach to sharp criticism over the disruptions caused by the drones.

One user, @JohnDoeTech, echoed the sentiments of many residents, tweeting, “I can’t imagine living with that constant buzzing overhead. Amazon needs to seriously rethink this drone delivery thing if they can’t solve the noise problem.” This comment garnered significant engagement, with many agreeing that the noise levels were a major drawback to what otherwise could be a groundbreaking service.

@GreenFutureNow, a user focused on sustainability, offered a different perspective: “Sure, the drones are loud, but think of the environmental benefits. Fewer delivery trucks on the road means less pollution. We should be supporting this technology, not fighting it.” This post sparked a lively debate, with some users pointing out that while the environmental benefits are clear, they shouldn’t come at the expense of quality of life for local residents.

@QuietLifeTX, who appears to be a resident of College Station, voiced frustration directly: “We didn’t sign up to live in a drone testing ground. Amazon needs to either fix the noise issue or move their facility. We deserve peace and quiet.” This sentiment was widely shared among locals, many of whom expressed their dissatisfaction with Amazon’s current operations in the area.

However, not all feedback was negative. @TechEnthusiast89 commented, “Drone delivery is the future! Sure, there are kinks to work out, but this is the price of progress. I’d love to see this rolled out nationwide.” This optimistic view was shared by other tech-forward users who see drone delivery as an inevitable and exciting advancement, despite the current challenges.

Some users highlighted the broader implications of the noise issue. @LegalEagle pointed out, “Interesting to see how local noise ordinances and federal regulations will clash as drone delivery becomes more common. This could set some important legal precedents.” This comment touched on the potential for legal battles as drone technology continues to advance and encroach on public and private spaces.

The Divided Public Opinion

The debate on X highlights the divide in public opinion over drone delivery. While many appreciate the convenience and potential environmental benefits, others are concerned about the immediate impact on their daily lives, particularly the noise. This divide mirrors the broader conversation happening in communities like College Station, where the push for technological innovation is being weighed against the preservation of quality of life.

Amazon’s response to these online discussions has been cautious but optimistic. The company has reiterated its commitment to addressing community concerns, with spokesperson Sam Stephenson stating, “We’re listening to the feedback from both the residents of College Station and the broader public. Our goal is to make drone delivery as seamless and non-disruptive as possible.”

As the conversation continues to evolve online, it’s clear that the issue of drone delivery noise is not just a local problem but a national, and even global, concern. The dialogue on X suggests that while many are excited about the future of drone technology, there is still much work to be done to ensure that this future is welcomed by all. The challenge for Amazon and other companies in the space will be to navigate these concerns thoughtfully while continuing to innovate.

A New Hurdle in the Supply Chain

Rivian, which has been lauded for its innovative electric vehicles, declined to specify which components were in short supply. However, the company assured that it expects to recover all missed production, though no specific timeline was provided. “Part shortages are common in the industry,” a Rivian spokesperson told Bloomberg, adding that production of the R1 electric pickup and SUV models remains unaffected. Despite the disruption, all affected employees have the opportunity to continue working 40 hours a week during the pause.

This production halt highlights the broader supply chain issues that have plagued the automotive industry, particularly EV manufacturers, as they strive to meet growing demand. For Rivian, these challenges come at a critical time as the company works to boost output of its electric vehicles next year.

Impact on Amazon and Future Deliveries

Rivian has a significant deal to supply Amazon with 100,000 electric delivery vans by the end of the decade, and approximately 15,000 of these vehicles are already in service across the United States. Despite the current production pause, Amazon, Rivian’s largest shareholder, does not expect the issue to impact its operations. An Amazon spokesperson confirmed, “We’re aware that Rivian encountered short-term production issues this month, and we don’t expect it to impact us.”

The timing of this pause is particularly noteworthy as it coincides with Amazon’s busiest season. Historically, the online retail giant holds off on expanding its fleet during the final quarter of the year to focus on managing the holiday sales rush. Rivian’s Chief Financial Officer, Claire McDonough, has indicated that the company expects Amazon to take fewer deliveries during this period, aligning with Amazon’s seasonal patterns.

A Surplus of Vans and Future Prospects

Rivian has accumulated a surplus of delivery vans at its Illinois plant, awaiting delivery to Amazon. While this backlog may seem concerning, it provides a buffer that could mitigate the impact of the current production pause. Moreover, Rivian has reaffirmed its commitment to producing 57,000 electric vehicles this year, a target that includes both its commercial vans and consumer vehicles like the R1T pickup and R1S SUV.

This parts shortage is not the first supply chain issue Rivian has faced, and it likely won’t be the last. As the company continues to navigate these challenges, its ability to maintain production schedules and meet its ambitious goals will be closely watched by investors and industry analysts alike.

Navigating the Road Ahead

The production pause at Rivian’s Illinois plant underscores the volatility and complexity of the supply chains that underpin the electric vehicle industry. For Rivian, a company that has garnered significant attention and investment, including from Amazon, overcoming these hurdles is crucial not just for its immediate production targets but for its long-term viability in the highly competitive EV market.

As the EV landscape continues to evolve, Rivian’s experience serves as a reminder of the intricacies involved in scaling production, particularly in a sector that is still in its relative infancy. While the temporary halt in van production may cause some concern, the company’s strategic planning and existing surplus of vehicles offer a degree of reassurance that Rivian can weather this latest storm.

As Rivian looks to the future, the ability to manage supply chain disruptions and maintain steady production will be essential to fulfilling its promises to customers and shareholders alike. The next few months will be critical in determining whether Rivian can achieve its production goals and continue its upward trajectory in the burgeoning electric vehicle market.

Fake reviews have been a long-term and growing issue for online companies. Amazon and Google have struggled with the problem, with the companies periodically investigated by regulators keep to determine if they are doing enough to tackle the issue.

The FTC is now directly addressing the issue by prohibiting companies from buying or selling fake reviews.

“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” said FTC Chair Lina M. Khan. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”

The final rule prohibits the following:

• Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials: The final rule addresses reviews and testimonials that misrepresent that they are by someone who does not exist, such as AI-generated fake reviews, or who did not have actual experience with the business or its products or services, or that misrepresent the experience of the person giving it. It prohibits businesses from creating or selling such reviews or testimonials. It also prohibits them from buying such reviews, procuring them from company insiders, or disseminating such testimonials, when the business knew or should have known that the reviews or testimonials were fake or false.
• Buying Positive or Negative Reviews: The final rule prohibits businesses from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative. It clarifies that the conditional nature of the offer of compensation or incentive may be expressly or implicitly conveyed.
• Insider Reviews and Consumer Testimonials: The final rule prohibits certain reviews and testimonials written by company insiders that fail to clearly and conspicuously disclose the giver’s material connection to the business. It prohibits such reviews and testimonials given by officers or managers. It also prohibits a business from disseminating such a testimonial that the business should have known was by an officer, manager, employee, or agent. Finally, it imposes requirements when officers or managers solicit consumer reviews from their own immediate relatives or from employees or agents – or when they tell employees or agents to solicit reviews from relatives and such solicitations result in reviews by immediate relatives of the employees or agents.
• Company-Controlled Review Websites: The final rule prohibits a business from misrepresenting that a website or entity it controls provides independent reviews or opinions about a category of products or services that includes its own products or services.
• Review Suppression: The final rule prohibits a business from using unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations to prevent or remove a negative consumer review. The final rule also bars a business from misrepresenting that the reviews on a review portion of its website represent all or most of the reviews submitted when reviews have been suppressed based upon their ratings or negative sentiment.
• Misuse of Fake Social Media Indicators: The final rule prohibits anyone from selling or buying fake indicators of social media influence, such as followers or views generated by a bot or hijacked account. This prohibition is limited to situations in which the buyer knew or should have known that the indicators were fake and misrepresent the buyer’s influence or importance for a commercial purpose.

The FTC voted 5-0 to pass the new rule. Hopefully, it will help improve consumer confidence and enable more honest evaluation of products.

The social media company made the announcement in a blog post:

Users can now seamlessly discover and purchase their favorite products from Amazon directly within the TikTok app. This shopping experience is powered by Amazon through ads placed on TikTok and allows users to complete product purchases with Amazon in TikTok’s native environment.

The company outlined the specifics of how the service will work:

• Shoppers will see Amazon product recommendations on the “For You” feed. When ready to purchase, users can choose to link their TikTok account to their Amazon account through a secure, quick, and easy one-time set-up.
• Once accounts are linked, Amazon customers are able to complete a checkout with Amazon in the product ad without leaving the TikTok app—enabling a faster, more frictionless experience.
• Users who choose to link their accounts in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in TikTok as part of the experience.
• At any time, users can choose to unlink their Amazon account in TikTok’s app settings.

Anthropic is one of the leading AI firms, and one of OpenAI’s main competitors. Amazon has been a major Anthropic investor, completing a $4 billion investment in the company in March 2024.

The wording of the CMA’s complaint, and the section of the Enterprise Act 2002 that it references, make clear that the agency is investigating whether Amazon’s investment in the AI firm represents a merger—even if that’s not what the companies are calling it.

In a statement to Engadget, an Anthropic spokesperson made clear that the investment does not represent a merger between the two companies, and that the AI firm remains independent.

“We are an independent company,” the spokesperson said. “Amazon does not have a seat on Anthropic’s board, nor does it have any board observer rights. We intend to cooperate with the CMA and provide them with a comprehensive understanding of Amazon’s investment and our commercial collaboration.”

From the outside looking in, it seems unlikely that the CMA will be able to prove that Amazon’s investment represents a merger with Anthropic. In addition to the points made in the above statement, Amazon is hardly the only investor in the startup. In fact, it’s not even the only company that has invested billions. In late 2023, Google announced it would invest $2 billion in Anthropic, after it already invested a previous $300 million in early 2023.

Amazon announced the deal in a blog post:

Amazon Prime Video and the NBA today announced an 11-year media rights agreement, beginning with the 2025-26 NBA season. In a landmark deal, Prime Video will present exclusive global coverage for 66 regular-season NBA games, including an opening-week doubleheader, a new Black Friday NBA game, and all games from the Knockout Rounds of the Emirates NBA Cup, including the in-season tournament’s Semifinals and Finals.

As part of the deal, Prime Video will also be the destination for NBA League Pass, both in the US and internationally.

“The digital opportunities with Amazon align perfectly with the global interest in the NBA,” said NBA Commissioner Adam Silver. “And Prime Video’s massive subscriber base will dramatically expand our ability to reach our fans in new and innovative ways.”

“Elevating our partnership with Amazon allows us to provide more games and access to fans who subscribe to Prime Video around the world at a time of historic interest in the WNBA and women’s basketball,” said WNBA Commissioner Cathy Engelbert. “Amazon has demonstrated its dedication to the growth of our sport throughout our current partnership and will now be a significant contributor to the long-term sustainability of the WNBA for the players, league, and teams.”

In a post on LinkedIn, Amazon CEO Andy Jassy voiced how thrilled he was with the deal:

Couldn’t be more excited about the long-term agreement we just signed with the NBA.

Starting in the 2025-26 season, Prime members will be able to stream an exciting slate of regular season games, the NBA Cup in-season tournament, the entire postseason play-in tournament, first and second round playoff games, and NBA conference finals every other season.

We’ve also expanded our relationship with the WNBA, and will be streaming 30 regular season games annually, 1/3 of all playoff games, and three WNBA finals over the 11 years.

We are honored to work with these amazing products and leagues, and can’t wait to keep innovating the viewing experience for fans.

The deal is a big win for Amazon’s streaming service in an increasingly competitive industry where exclusivity deals are key to preventing user churn.

Rufus was introduced in February 2024 to a small subset of Amazon mobile app customers. The AI chatbot is designed to help answer questions, provide information, and inform shopping decisions. The company has used the feedback from the beta period to improve the chatbot, and is now rolling it out to all US customers.

Amazon says Rufus helps answer questions based on the information that is available for various products:

Customers are asking Rufus specific product questions, and Rufus is sharing answers based on the helpful information found in product listing details, customer reviews, and community Q&As. Customers are asking Rufus questions like, “Is this coffee maker easy to clean and maintain?” and “Is this mascara a clean beauty product?” They’re also clicking on the related questions that Rufus surfaces in the chat window to learn more about the product—for example, “What’s the material of the backpack?” Customers can also tap on “What do customers say?” to get a quick and helpful overview of customer reviews.

The AI chatbot is also able to help customers easily compare products:

Customers are using Rufus to quickly compare features by asking questions like, “What’s the difference between gas and wood fired pizza ovens?” Aspiring runners are asking questions such as, “Should I get trail shoes or running shoes?” and people shopping for TVs are asking Rufus to, “Compare OLED and QLED TVs.” I recently used Rufus to help me compare options and find my son his first baseball glove—“Comfortable baseball gloves for a 9 year old beginner.” I ended up buying this one, if you’re curious.

Interestingly, because Rufus is based on generative AI and trained to answer a wide variety of questions, it is able to answer questions that are not directly related to a purchase:

Because Rufus can answer a wide range of questions, it can help customers at any stage of their shopping journey. A customer interested in cookware may first ask, “What do I need to make a soufflé?” Preparing for special occasions is also popular among customers, with shoppers asking questions like, “What do I need for a summer party?”

Amazon’s AI chatbot is a good example of some of the tangible ways AI can be used to improve the consumer experience and surface helpful information and inform decisions.

Prime Day is Amazon’s annual event that sees steep discounts on products across categories. In some cases, customers can save up to 50% off of products. Positioned shortly before many kids return to school in the US, Prime Day is a good time to save on back-to-school products.

“Prime Day is the biggest event of the year celebrating Prime members, offering huge savings on the brands they love, plus deals across Prime member services like grocery delivery from Amazon subscription and music and podcasts from Amazon Music,” said Jamil Ghani, vice president of Amazon Prime. “If you’re not a Prime member yet, now is the perfect time to join and get the most out of Amazon.”

The company says customers can expect the following deals:

• Save up to 68% on select devices and bundles including Ring Spotlight Cam Plus, eero Pro 6E mesh Wi-Fi systems, Blink Outdoor 4 + Echo Show 5 bundles, Fire TV Stick with an Xbox Wireless Controller bundle, Fire TV 4-Series 4K UHD smart TV, Fire 10 Kids tablet, and Ring Pet bundles
• Save up to 50% on select all-new Amazon devices including Echo Spot, Blink Mini 2, and Ring Battery Doorbell Pro
• Save up to 50% off home appliances from Dyson, Shark, and Bissell
• Save up to 50% on Keurig coffee brewers
• Save up to 50% on Crest Whitestrips and Oral-B toothbrushes
• Save 45% on iRobot Roomba vacuums, mops, and combos
• Save up to 40% on Sony headphones
• Save up to 40% on campus essentials from Amazon Basics and Amazon Essentials
• Save up to 40% off select styles from Allbirds and Rothy’s Footwear
• Save up to 40% on Orolay select apparel
• Save up to 40% on IT Cosmetics makeup and skincare
• Save up to 35% on select kitchen and home appliances from Vitamix
• Save up to 35% off select products from Shopbop including Dr. Martens, Reebok, Fila, and APL
• Save 30% on Urban Decay cosmetics and on Lancôme cosmetics, skincare, and fragrance
• Save up to 30% on select shoes and apparel from New Balance
• Save up to 30% on select haircare products from Amika, Biolage, and Color Wow
• Save up to 30% on select skincare products from Innisfree, Clarins, and beauty products from goop and good.clean.goop
• Save up to 30% off select premium beauty products from new to Amazon brands including Bumble and bumble., Clinique, and Kiehl’s
• Save 20% on select pre-loved designer handbags & accessories from What Goes Around Comes Around
• Save 20% on select luxury fashion and beauty from brands such as AREA, Giuseppe Zanotti, Altuzarra, Dr. Barbara Sturm, and Cle de Peau
• Save on celebrity brands like Martha Stewart, Paris Hilton, and Below 60 by Hilary Duff

Amazon has stirred controversy among its employees with its insistence they return to the office. To make matters worse, executives have failed to point to verifiable data on the benefits of an RTO, instead saying the decision was a “judgment call” or “serendipity.”.

In response to the company’s ongoing RTO efforts, as well as layoffs, employees at the company’s headquarters planned a walkout for May 31. The National Labor Relations Board (NLRB) has now accused the company of retaliating against those employees. The NLRB says Amazon “interrogated its employees regarding their protected, concerted activity.”

Read More: Amazon Exec Angers Staff By Admitting He Had ‘No Data’ to Support RTO Mandates

The NLRB says one of the employees that organized the walkout was placed on PIVOT, the company’s performance improvement plan, before being offered a severance package.

THe NLRB concluded that Amazon “as been interfering with, restraining, and coercing employees in the exercise of the rights guaranteed in § 8(a)(1) of the [National Labor Relations] Act.”

Amazon has a long history of anti-union and anti-organizing activities. A judge ruled in May that CEO Andy Jassy went too far when he made anti-union comments in interviews. Similarly, in late 2022, another judge ordered the company to stop its anti-union activities. The company has gone so far as to hire Pinkerton detectives to dissuade unionization efforts and disturbed investors with its activities enough for them to call on the company to stop pressuring workers.

The NLRB’s latest ruling merely adds to Amazon’s growing labor issues.

Under CEO Andy Jassy, Amazon has been undergoing a number of cost-saving measures that have put a spotlight on divisions and products that are not profitable, such as Alexa. The company recently ended its Alexa Developer Rewards Program that paid developers to create Alexa apps.

According to Reuters’ sources, the next step appears to be a paid Alexa service that heavily relies on the latest generative AI to help Alexa better compete in today’s market. Some of them said Jassy is personally invested in seeing Alexa significantly improve and become the “more intelligent and capable Alexa” he promised in a letter to shareholders.

Amazon told Reuters that Alexa already included some generative AI elements.

“We have already integrated generative AI into different components of Alexa, and are working hard on implementation at scale—in the over half a billion ambient, Alexa-enabled devices already in homes around the world—to enable even more proactive, personal, and trusted assistance for our customers,” said an Amazon spokeswoman in a statement.

The project, codenamed “Banyan,” will focus on adding improved generative AI and conversational abilities to Alexa, allowing customers to ask for shopping device, compose emails, order meals from Uber Eats, all in a conversational manner that is impossible for the current “Classic Alexa.”

Senior management has reportedly told some team members that 2024 is a “must win” for Alexa. Reuters’* source say the company is considering two AI-powered tiers to replace Classic Alexa, with plans to charge $5 or $10 per month for the more advanced tier.

Despite the lofty goal, challenges remain. First and foremost is the question of whether consumers will pay for a feature that Amazon’s competitors are giving away for free.

Amazon has been working to improve its environmental impact. Given the number of packages Amazon ships, eliminating plastic filler materials can make a big difference in the company’s efforts. The company says it has already eliminated 95% of plastic air pillows, and is on target for full removal by the end of 2024.

We’re constantly inventing and thinking big to make our packaging small. We want to ensure that customers receive their items undamaged, while using as little packaging as possible to avoid waste, and prioritizing recyclable materials.

The removal of 95% of our plastic air pillows is another step in our path to avoid and reduce packaging—and part of our multi-year effort to remove plastic delivery packaging from North America fulfillment centers. To date, this will be Amazon’s largest plastic packaging reduction effort in North America and will avoid nearly 15 billion plastic air pillows annually. For Prime Day this year, nearly all of our customer deliveries will not contain plastic air pillows.

“I’m proud of the cross-Amazon collaboration to make a positive impact on the customer delivery experience with easier to recycle materials. It’s a great example of how we thoughtfully test and scale new solutions to protect our customer experience,” said Pat Lindner, VP of Mechatronics and Sustainable Packaging. “We are working towards full removal in North America by end of year and will continue to innovate, test, and scale in order to prioritize curbside recyclable materials.”

The company says it is also working to invent new materials and recycling solutions.

We’re also working to invent new materials and recycling solutions that keep both our customers and the environment in mind. For example, Amazon has teamed up with the U.S. Department of Energy to bring new materials and recycling programs to life. We’re also piloting new technology with Glacier, a San Francisco-based artificial intelligence (AI) and robotics company, to use AI-powered robots to automate the sorting of recyclables and collect real-time data on recycling streams for companies—which can help reduce landfill waste and increase the use of recycled materials in packaging.

The announcement is good news for climate activists and consumers alike, especially given the sheer volume of plastic Amazon previously used.

The e-commerce giant has been gradually rolling out its drone delivery service to speed up deliveries and improve the last-mile delivery experience. Until now, the FAA has required that commercial drone operators maintain line of sight on the drones they are flying.

Amazon has been granted permission to fly its drones beyond visual range, using Beyond Visual Line of Sight (BVLOS) technology. BVLOS allows drone operators to use instrumentation to fly beyond line of sight.

To obtain this permission, we developed a BVLOS strategy, including an onboard detect-and-avoid technology. We’ve spent years developing, testing, and refining our onboard detect-and-avoid system to ensure our drones can detect and avoid obstacles in the air.

We submitted crucial engineering information to the FAA, including our onboard detect-and-avoid capabilities. This included how our system was designed, how it is operated, how it is maintained, and ultimately how we validated that the system performs to specified requirements. We then conducted flight demonstrations in the presence of FAA inspectors to show our system works in real-world scenarios—we flew in the presence of real planes, helicopters, and a hot air balloon to demonstrate how the drone safely navigated away from each of them. We also provided extensive analysis and test data for our technology that further validated the safety of our system. After reviewing this information and observing the technology in action at our test site, the FAA provided Amazon Prime Air with BVLOS approval.

Amazon will expand its delivery area in College Station, Texas. The company’s goal is to use drones to deliver packages in 30 minutes or less.

In recent years, e-commerce has undergone a seismic shift, primarily driven by the growing influence of big tech companies like Amazon, eBay, and Google. Initially lauded for their innovative solutions and customer-centric approaches, these giants now face criticism for practices that prioritize profit over user experience. Sellers and buyers feel the pinch as fees increase, services decline, and the market becomes more saturated with cheap products, often from overseas.

Amazon: A Focal Point of Discontent

Amazon, once hailed as a revolutionary platform for small sellers, has become a focal point of discontent. Many long-time sellers recall the early days of the Fulfillment by Amazon (FBA) program, which provided an efficient and affordable way to manage inventory and logistics. However, these same sellers are grappling with escalating fees and a marketplace dominated by low-cost, often low-quality products from international sellers. This shift has not only squeezed profit margins but also diminished the overall quality of goods available to consumers.

The ripple effects of these changes extend beyond Amazon. Platforms like eBay and Etsy are also experiencing similar trends, with increasing fees and declining service levels driving frustration among users. Sellers find it harder to maintain profitability, while buyers face longer shipping times and questionable product quality. This broader trend, often referred to as the “crappification” of big tech, highlights a growing disconnect between these companies’ corporate strategies and their users’ needs.

Future of E-Commerce Remains Uncertain

Looking ahead, the future of e-commerce remains uncertain. As regulatory pressures mount and new competitors emerge, the industry may be poised for another wave of transformation. However, the lessons from Amazon and other tech giants are clear: sustainable success in e-commerce requires balancing growth and maintaining high service standards. For now, sellers and buyers are left navigating a complex and often frustrating digital marketplace, hoping for better days ahead.

Amazon’s Transformation

When Amazon launched its Fulfillment by Amazon (FBA) program, it revolutionized e-commerce. “You could send your products to Amazon, and they’d handle storage and shipping at a very reasonable price,” Chou recalls. The fees were a small fraction of a seller’s revenue back then, making it an attractive platform for new businesses. “Everyone was making money hand over fist,” Chou noted.

The Rise of Fees

However, as Amazon grew, the costs for sellers began to rise. “Amazon charges a 15% referral fee, about 10-15% for FBA, and another 20-30% for advertising,” Chou explains. This year alone, Amazon introduced a new receiving fee, adding to the financial burden on sellers. “Now you have to pay a fee between $2.10 to $6 per unit for Amazon to accept standard and large bulky products into their warehouse,” Chou points out. This fee reflects the cost of distributing inventory to multiple fulfillment centers, but many sellers feel squeezed.

Impact of Chinese Sellers

Another significant change came with Amazon’s aggressive recruitment of Chinese sellers. “In 2016, Amazon’s Dragonboat program allowed Chinese sellers direct access to U.S. fulfillment centers,” Chou says. This influx of Chinese sellers, often offering lower-priced products, has made it difficult for U.S. sellers to compete. “They started knocking off existing sellers, blatantly copying their IP, gaming the reviews, the rankings—everything,” Chou observes. Despite these practices, Amazon did little to protect legitimate sellers, focusing instead on keeping prices low for buyers.

Quality and Service Decline

Service quality also suffered as Amazon tightened its grip on buyers and sellers. “Back in the day, you could get a hold of a human on the phone, but today it’s impossible,” Chou laments. The company’s focus shifted to maximizing profits, often at the expense of the sellers who helped build its platform. “It’s always a canned response if you manage to get a reply at all,” Chou adds, highlighting the deterioration in customer service.

The Future for Sellers

For sellers, adapting to these changes has become crucial. “The secret to long-term success is to ride the wave as it comes and then jump on newer waves as they appear,” Chou advises. This means diversifying sales channels and investing in owned marketing platforms to reduce dependency on Amazon. “Focus more of your efforts on your own website that you physically own,” Chou suggests, emphasizing the importance of building a direct relationship with customers.

Impact on Sellers and Buyers

The evolving landscape of Amazon and other big tech platforms has profoundly affected both sellers and buyers. For sellers, the increased fees and the influx of low-cost Chinese products have made it increasingly difficult to maintain profitability. “Sellers are getting squeezed on fees and barely making any profit,” Chou notes. The competitive environment has intensified, pushing many small businesses to the brink.

Challenges for Sellers

Sellers now face a multitude of fees that erode their margins. In addition to the referral and FBA fees, Amazon has introduced fees for receiving inventory and maintaining stock levels. “Amazon charges a low inventory search charge if your stock levels are below what they expect, adding to the financial strain on sellers,” Chou explains. This fee applies if a seller’s inventory levels are consistently low relative to their sales, which can be particularly challenging for small businesses with limited resources.

Deteriorating Product Quality

For buyers, the quality of Amazon products has also declined. “Most of the products on Amazon are now just cheap repackaged products from Alibaba,” Chou points out. This has led to an increase in counterfeit and low-quality items, undermining consumer trust. “You can’t really trust what you are buying anymore,” Chou adds, highlighting a growing concern among shoppers.

Customer Service Woes

Furthermore, Amazon’s customer service has deteriorated, affecting sellers and buyers. “It’s impossible to get a hold of a human on the phone, and if you do, it’s always a canned response,” Chou remarks. This decline in service quality has frustrated many users who once relied on Amazon’s reliable support.

Despite these challenges, sellers are finding ways to adapt. Many are focusing on building their websites and utilizing owned marketing platforms to reduce dependency on Amazon. “The key to long-term success is to diversify and not rely solely on one platform,” Chou advises. This strategy allows sellers more control over their business and builds direct customer relationships, fostering greater resilience in an ever-changing e-commerce landscape.

Broader Tech Industry Trends

The trends affecting Amazon are not unique to the e-commerce giant but reflect a broader pattern across the tech industry. Many major tech companies initially gain traction by offering exceptional services and support. However, their practices often shift as they grow and seek to maximize profits, leading to increased costs and reduced service quality. “Every big tech company follows the same pattern,” Chou observes. “They start off great and then go to crap as they become more successful.”

Nickel and Dime Approach

This shift is characterized by a “nickel and dime” approach, where companies introduce numerous small fees that collectively add up. “Google, Facebook, and other big tech companies are all guilty of this,” Chou notes. “They start charging higher fees and offering less in return, which hurts both sellers and buyers.” For instance, Facebook’s decision to limit the reach of fan pages and groups unless users pay for ads has frustrated many businesses that rely on organic reach.

Increasing Fees and Declining Service

eBay and Etsy have also followed similar paths. Sellers on these platforms have seen fee increases and more restrictive policies that make it harder to operate profitably. “eBay and Etsy have become more expensive and less supportive over time,” Chou says. This trend of increasing fees and declining service quality is a common complaint among users of various tech platforms.

Impact on Small Businesses

Small businesses, in particular, are feeling the squeeze. “Big tech’s practices are making it increasingly difficult for small businesses to survive,” Chou emphasizes. Many small businesses have had to adapt by diversifying their marketing strategies and seeking alternative platforms to reduce their dependency on major tech companies. This includes focusing more on owned marketing channels like email and SMS, which provide more control and stability.

Adapting to Change

As the tech landscape evolves, businesses must stay agile and ready to pivot. “The secret to long-term success is to ride the wave as it comes and then jump on newer waves as they appear,” Chou advises. This approach ensures that businesses remain resilient and can continue to thrive despite the challenges posed by big tech companies’ changing practices.

In summary, the broader trends in the tech industry show a clear pattern of initial user-centric growth followed by profit-driven changes that can disadvantage both sellers and buyers. This has significant implications for the future of e-commerce and tech services, underscoring the importance of adaptability and diversification for businesses.

Future Outlook

Looking ahead, the landscape for e-commerce and tech companies remains dynamic and unpredictable. Many industry experts predict further consolidation and increased regulation as governments worldwide scrutinize major tech firms’ practices. “Regulatory pressure is likely to increase, especially in the EU,” said technology analyst Karen Smith. “We could see more stringent rules aimed at protecting small businesses and consumers from unfair practices.”

Potential for New Entrants

New entrants could also disrupt the market. “Innovation never stops, and there’s always room for new players to shake things up,” noted Chou. Emerging platforms prioritizing transparency, fairness, and user experience could carve out significant market shares by addressing the shortcomings of established giants. “Businesses need to stay agile and be ready to pivot to new opportunities,” Chou advises.

For sellers, the emphasis will likely shift toward owned marketing channels. As reliance on platforms like Amazon, eBay, and Facebook becomes more costly and less reliable, businesses invest more in direct communication channels such as email marketing and SMS. “Building a strong, direct relationship with customers is more important than ever,” Chou asserts. “It’s the best way to ensure stability and control over your business’s future.”

Technological Advancements

Technological advancements, such as AI and blockchain, could also significantly shape the future of e-commerce. These technologies have the potential to enhance transparency, reduce costs, and improve efficiency. “AI can help businesses optimize their operations and provide better customer experiences,” Smith explains. Meanwhile, blockchain offers promising solutions for ensuring fair practices and transparency.”

Continued Adaptation

Ultimately, the key to thriving in this evolving landscape is continued adaptation. Businesses that can stay ahead of the curve, anticipate changes, and leverage new technologies and platforms will be well-positioned to succeed. “The tech industry is always changing, and the only constant is the need to keep evolving,” Chou concludes. “Those who adapt will thrive, while those who resist change may struggle to survive.”

This future outlook underscores the importance of vigilance, innovation, and strategic planning for businesses navigating the complex and ever-changing tech landscape. As the industry transforms, staying informed and adaptable will be crucial for long-term success.

I started my ecom store for $630.
I started my blog for $10.

Both now generate over $1,000,000/year.

What have you got to lose?

— Steve Chou (@mywifequit) January 31, 2024

Walmart has enjoyed being the top retailer and #1 on Fortune’s list for years, but Amazon is closing that gap and may soon take the top spot. According to The Wall Street Journal, Walmart’s sales last year came in at $648 billion, growing at a rate of 6%. Meanwhile, Amazon’s revenue came in at $575 billion, with a growth rate of 12%.

The numbers alone don’t tell the whole story, however, but still pose a major problem for Walmart. The vast majority of the company’s revenue comes directly from retail sales. In contrast, a large portion of Amazon’s revenue comes from its other businesses, such as cloud computing.

WSJ’s sources say this difference is a concern among Walmart executives, since the company’s opportunities to compete with Amazon outside of retail sales are limited. Instead, Walmart execs seem to be focusing on providing the best service and being the best corporate citizen, as opposed to being the biggest, in what may be an acknowledgment of the inevitable.

That narrative appears to already be making its way into the company’s official stance, with a company spokeswoman telling WSJ that Walmart is “constantly striving to be the best version of ourselves, staying true to our values and offering quality, affordable goods and services. Everything else will take care of itself.”

Walmart is trying to diversify its revenue sources. One such attempt involves the company teaming up with Salesforce to sell its fulfillment and delivery software and solutions to other companies. Despite such efforts, Walmart still can’t compare to Amazon’s extra-retail revenue.

As WSJ points out, the one stronghold Walmart still has is groceries, but Amazon is making headway even there, with the company projected to take 20% of the US grocery market by the end of the decade.

Walmart is working to streamline operations, shutting down its Walmart Health initiative and eliminating hundreds of corporate jobs. The company is also taking a page out of Amazon’s book, launching its Walmart+ subscription service to take on Amazon Prime.

Only time will tell if such measures—along with its diversification efforts—help the retail giant fend off Amazon

Amazon is fending off an antitrust lawsuit brought by the FTC and 17 states, alleging the company “used a set of punitive and coercive tactics to unlawfully maintain its monopolies.” In a motion filed on May 10, prosecutors accused Amazon of using Signal to circumvent laws regarding requiring companies to save internal communications.

For years, Amazon’s top executives, including founder and former CEO Jeff Bezos, “discuss[ed] sensitive business matters, including antitrust, over the Signal encrypted-messaging app instead of email.” These executives turned on Signal’s “disappearing message” feature, which irrevocably destroys messages, even after Amazon was on notice that Plaintiffs were investigating its conduct. Plaintiffs bring this motion to compel Amazon to produce documents related to the company’s failure to preserve Signal messages, namely Amazon’s document preservation notices and its instructions about the use of ephemeral messaging applications, including Signal.

Amazon has filed a response, saying the FTC is painting “a misleading picture” of the company’s Signal usage.

Plaintiffs paint a misleading picture of Signal use by Amazon personnel in an attempt to compel discovery of privileged documents. As Plaintiffs know, the Signal messaging application was not a substitute for Amazon’s detailed written communications. Rather, it was a secure and informal means of short-form messaging that certain employees began using following a broadly-publicized incident in which Jeff Bezos’s phone was hacked by agents of a foreign government. Despite the FTC’s best efforts to malign it, that use was an appropriate response to the hacking incident: Signal and similar secure messaging applications are widely used—including by numerous federal and state actors—precisely because they are more secure than ordinary text messaging applications.

The company goes on to say that the FTC knows it has not improperly used Signal, based on its own investigation of the matter.

There is also no evidence, despite the FTC’s best efforts to suggest otherwise, that Amazon personnel used Signal to discuss the business practices at issue in this case. The FTC knows this because they deposed Amazon’s executives about their use of Signal and, at Amazon’s invitation, inspected work-related Signal conversations from the start of Signal use following the hacking incident through May 2022. Amazon then produced the Signal messages Plaintiffs requested from those inspections and offered additional inspections and productions. As a result, Plaintiffs possess, or have been offered access to, virtually all the information Amazon has on this topic. That information reinforces the executives’ legitimate use of Signal, and provides no indication that Signal was used to conceal or spoliate evidence for this case.

Amazon says the FTC’s motion is essentially a fishing trip, designed to gain access to privileged communication the agency would otherwise not have reason or grounds to access.

After almost 15 combined years at AWS, I am going to be moving on. It has been a true privilege to help lead this business from pre-revenue to $100B annualized revenue. I’m humbled by the many customers who have said they wouldn’t be what they are without AWS, thankful to our…

— Adam Selipsky (@aselipsky) May 14, 2024

A Legacy of Leadership and Innovation

Adam Selipsky, who rejoined AWS as CEO after a successful stint at Tableau, has been instrumental in driving the growth and innovation of the cloud unit. Under his leadership, AWS achieved a remarkable $100 billion revenue run rate, solidifying its position as the mainstay of Amazon’s cash flow. In a heartfelt letter to staff and shareholders, Amazon CEO Andy Jassy praised Selipsky’s contributions. “Adam leaves AWS in a strong position, having reached a $100 billion annual revenue run rate this past quarter, with YoY revenue accelerating again,” Jassy wrote. “I’m deeply appreciative of Adam’s leadership during this time, and for the entire team’s dedication to deliver for customers and the business.”

Selipsky’s departure follows a dynamic three-year tenure during which AWS navigated the complexities of the COVID-19 pandemic. Despite the challenges, the division thrived, making strategic decisions to help customers optimize their spending and launching several impactful generative AI services, such as Amazon Bedrock and Amazon Q. “Leading this amazing team and the AWS business has been a privilege,” Selipsky noted in his farewell message. “I am proud of all we’ve accomplished, going from a start-up to where we are today.”

The Rise of Matt Garman

Matt Garman, who will succeed Selipsky, brings a wealth of experience and a deep understanding of AWS’s operations. Having joined Amazon as an MBA intern in 2005, Garman has held numerous positions across the company, from product management to leading worldwide sales, marketing, support, and professional services for AWS. His journey within Amazon is a testament to his adaptability and leadership skills.

“Matt has an unusually strong set of skills and experiences for his new role,” Jassy wrote. “He’s very customer-focused, a terrific product leader, inventive, a clever problem-solver, and has high standards and a meaningful bias for action.” Garman’s ascent to CEO reflects Amazon’s commitment to internal development and continuity. His appointment ensures that the cloud unit remains at the forefront of innovation and customer service.

Strategic Vision and Future Prospects

Garman’s appointment comes at a critical juncture for AWS. The cloud unit not only supports Amazon’s other ventures in e-commerce, healthcare, and logistics but also serves as a leader in providing infrastructure for large language models and AI. As Amazon continues to expand its footprint in the generative AI market, Garman’s experience in both product development and sales will be invaluable.

In his message to the AWS team, Garman expressed optimism about the future. “I am more optimistic than I have ever been for the potential for innovation and growth ahead of us, and I look forward to helping us move faster, invent more, and operate as one team to help our customers,” he said. “For me, AWS is much more than just a business. We are a team of missionaries working passionately to help make our customers’ lives and businesses better every day.”

Navigating the Pandemic and Beyond

Selipsky took over AWS in the midst of the COVID-19 pandemic, a period marked by unprecedented challenges and rapid changes. Under his direction, AWS made strategic long-term decisions to help customers become more efficient in their spend, even if it meant less short-term revenue for AWS. This customer-centric approach has been a hallmark of AWS’s strategy, reinforcing its reputation as a reliable partner for businesses navigating digital transformation.

“Adam took over at a time of great uncertainty,” noted Jassy. “Under his leadership, the team made the right long-term decisions to help customers become more efficient in their spend, even if it meant less short-term revenue for AWS. Throughout, the team continued to invent and release new services at a rapid clip.”

Innovation at the Core

During Selipsky’s tenure, AWS continued to innovate at a breakneck pace, introducing several impactful services that have set new standards in the industry. One of the notable achievements was the launch of Amazon Bedrock, a platform designed to help businesses build and deploy AI models efficiently. Another significant introduction was Amazon Q, a service aimed at simplifying the integration of AI into everyday business operations.

“We’ve always focused on helping our customers be more successful,” Selipsky remarked in an internal memo. “By continually innovating and launching new services, we’ve enabled businesses of all sizes to leverage the power of the cloud and AI to drive their own success.”

Preparing for the Future

As AWS looks to the future, Garman’s leadership is expected to bring a renewed focus on customer experience and product innovation. His extensive background in product management and his recent experience leading global sales and marketing efforts position him uniquely to drive AWS forward.

“Matt knows our customers and business as well as anybody in the world,” Jassy emphasized. “His senior leadership experience on both the product and demand generation sides will be invaluable as we continue to invent our future.”

Garman, in his message to the team, highlighted his commitment to maintaining AWS’s trajectory of growth and innovation. “Over the last 18 years, I have been fortunate enough to get to work on many different aspects of the AWS business,” Garman stated. “But one constant has been the world-class talent and the unwavering customer obsession of the people I have gotten to work with. I’m excited to get started and help us move faster, invent more, and operate as one team to help our customers.”

Wow! Quite the change coming for @awscloud. I thought @aselipsky brought what AWS needed for the next phase. Matt Garman will bring a different vibe more toward @ajassy's style.

Amazon Web Services CEO Adam Selipsky to step down https://t.co/3zBA5nhJXX#CIO #cloud $AMZN

— Tim Crawford (@tcrawford) May 14, 2024

Broader Implications for Amazon

The leadership transition at AWS is not just a significant event for the cloud unit; it has broader implications for Amazon as a whole. AWS is a crucial component of Amazon’s overall strategy, contributing significantly to the company’s revenue and profitability. As the primary driver of Amazon’s cash flow, the continued success of AWS is vital to funding Amazon’s diverse ventures and innovations across various sectors.

Amazon’s investment in cloud technology has positioned it as a leader in the industry, with AWS providing the backbone for many of the world’s most prominent digital services. The division’s continued growth and innovation under Garman will be closely watched by competitors and customers alike. As AWS continues to push the boundaries of what cloud technology can achieve, it will play a critical role in shaping the future of digital infrastructure and AI development.

The Future of Cloud Computing

The future of AWS, under Garman’s leadership, promises to be exciting. With a strong foundation built by Selipsky and a visionary leader in Garman, AWS is well-positioned to continue leading the cloud computing market. The division is expected to further its advancements in AI, machine learning, and other cutting-edge technologies.

“AWS has always been about pushing the envelope,” Garman said. “From our early days as a start-up to becoming a key player in the tech industry, we’ve always strived to be at the forefront of innovation. I look forward to continuing this tradition and helping our customers achieve their goals.”

As AWS continues to evolve, its impact on the tech industry and the broader economy will be profound. The division’s strategic investments, such as the recent $11 billion commitment in Indiana, underscore its long-term vision and commitment to growth. These investments are expected to create at least 1,000 jobs and support new workforce development training programs, highlighting AWS’s role in driving economic development alongside technological innovation.

Conclusion

As Adam Selipsky steps down and Matt Garman steps up, AWS is poised for a new chapter of growth and innovation. With a strong foundation built by Selipsky and a visionary leader in Garman, AWS is well-positioned to continue leading the cloud computing market and driving forward the next wave of technological advancements. The seamless transition in leadership ensures that AWS will maintain its momentum and continue to deliver exceptional value to its customers and stakeholders.

The cloud computing giant’s next steps will be closely watched, as Garman takes the helm with a blend of deep institutional knowledge and a forward-thinking vision. The world will be eager to see how AWS continues to shape the future of technology and what new heights it can achieve under its new leadership.