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A24 TECHNOLOGY
Saturday 16 February 2019
Amazon's stormy week will blow over, but debris will stay

By RACHEL LERMAN and anti-union stance.
MAE ANDERSON That grass-roots rebellion
SAN FRANCISCO (AP) — It's suggests that people are
been a complicated few growing more skeptical of
weeks for Amazon, what big tech companies, espe-
with its abrupt pullout from cially when government is
a massive New York City cutting them special deals,
development, extortion said Blair Levin, a policy
claims related to intimate adviser to New Street Re-
photos taken by its founder search and a former chief
Jeff Bezos and increasing of staff to a Federal Com-
antitrust scrutiny in Europe . munications Commission
For now, these events seem chairman.
unlikely to pose much threat "Time and time again, the
to Amazon's brand or busi- public has seen promises
ness. But they're indicative made and reality is differ-
of the mounting challenges ent," he said. "So they're
the e-commerce giant fac- going to be skeptical of
es as it grows ever larger Amazon. And it's across the
and more dominant. board, not just Amazon."
Amazon's turn in the spot- In this Jan. 29, 2018, file photo Jeff Bezos, the CEO and founder of Amazon.com, takes a walking Several European nations
light is a natural conse- tour of the Amazon Spheres in Seattle. are also investigating Ama-
quence of its prominence Associated Press zon's alleged anti-compet-
in retail, entertainment itive activity. On Thursday,
and internet infrastructure, unless he ended his private after Bezos made his public lash. But Argenti said the Austria's antitrust agency
Wedbush Securities analyst investigation into how the case against the Enquirer company's popularity with said it is reviewing com-
Dan Ives said. "As you get tabloid obtained his private last week. consumers won't likely be plaints that the company
bigger and more success- exchanges with his mistress. Public anger at tech com- affected by recent head- is favoring its own prod-
ful, you have more of a tar- Investors don't appear par- panies has been growing lines. ucts and discriminating
get on your back," he said. ticularly concerned that for some time, but much "I'm not going to stop order- against other sellers on its
Amazon did not return a these issues will distract the of it has been focused on ing my movies and pack- e-commerce site. German
request for comment Thurs- hard-driving Bezos, who Facebook and other tech ages from them, and I think antitrust authorities and the
day. Few analysts believe is also in the midst of a di- companies that collect that's the way most people European Commission are
Thursday's reversal in New vorce — generally con- vast amounts of personal will look at it," he said. investigating Amazon for
York or the previous week's sidered one of life's most user information for target- Longer-term issues, how- similar claims.
dust-up with the publisher stressful events. Even if ing online ads and other ever, could present a more In the U.S., politicians are
of the National Enquirer Bezos were to find his at- purposes. serious threat. Amazon's also speaking out against
will have much impact on tention otherwise occu- Facebook's privacy issues New York investment would Amazon's practices, said
consumer enthusiasm for pied, Evercore ISI analyst have been particularly have put 25,000 jobs in the Barry Lynn, executive direc-
Amazon's broad product Anthony DiClemente notes acute since they involve Long Island City neigh- tor of Open Markets, an in-
selection and services or that the Amazon chief has the company's core busi- borhood of Queens, at a stitution that studies corpo-
its fast shipping. Bezos has a trusted senior leadership ness, said Paul Argenti, a cost of nearly $3 billion in rate monopolies in the U.S.
accused the Enquirer of team in place. "That gives Dartmouth College pro- tax breaks. Local activists Lynn argues that Amazon is
"extortion and blackmail " investors comfort," he said. fessor of corporate com- called that a corporate a monopoly that should be
for threatening to disclose Amazon shares have more munication. Amazon isn't giveaway, one made even more heavily regulated by
revealing personal photos than made up a brief drop immune to the tech back- less palatable by Amazon's the government. q

Ex-Apple lawyer accused of profiting from confidential info

By MICHAEL LIEDTKE, AP Levoff, 45, realized gains market trading based on Levoff broke the law re- — a shortfall that typically
Technology Writer and avoided losses total- privileged information. peatedly, the complaints causes Apple's stock to fall.
SAN FRANCISCO (AP) — ing more than $600,000 in Levoff's alleged miscon- allege, by leveraging his Levoff then sold nearly all
One of Apple's former top illegal trades made peri- duct "was particularly egre- position on a special com- of his Apple holdings —
lawyers is facing accusa- odically from 2011 to 2016, gious given his responsibil- mittee that reviewed key more than 70,000 shares
tions of brazenly breaking based on estimates provid- ity for implementing the numbers contained in worth about $10 million at
the company's insider trad- ed in the documents. company's insider trading Apple's quarterly earnings the time — four days be-
ing rules that he helped Before Apple fired him last compliance policy," said reports before the results fore the company released
draft, while profiting from September, Levoff held Antonia Chion, associate were publicly announced. the results, according to
stock sales and investments various roles in Apple's cor- director for the SEC's en- His most brash move came the complaints. The day
made after he received porate law department forcement division. in July 2015 when Apple after those numbers came
confidential information starting in 2008. Apple Kevin Marino, the attor- was preparing to release out, Apple's stock fell by
about Apple's finances. promoted him to senior di- ney representing Levoff in its results for the April-June 4 percent. That downturn
The allegations against rector of corporate law in the proceedings, said he is period of that year. As part lumped Apple's sharehold-
Gene Levoff emerged in 2013 overseeing as many looking forward to fighting of Apple's disclosure com- ers with collective losses
criminal and civil com- as 30 attorneys. He also the allegations. mittee, Levoff received a of $32 billion on paper,
plaints filed Wednesday in had responsibility for draw- If he is convicted in the July 10 preview showing but Levoff avoided about
a New Jersey federal court ing up company policies criminal case, Levoff faces that the company's sales $345,000 in losses by sell-
by the U.S. Justice Depart- designed to prevent em- a prison sentence of up to of iPhones for the quar- ing shortly before the an-
ment and Securities and Ex- ployees from violating fed- 20 years and a $5 million ter had missed the targets nouncement, the govern-
change Commission. eral laws that prohibit stock fine. set by Wall Street analysts ment alleged.q