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A ‘Grass Roots’ Campaign to Take Down Amazon Is Funded by Amazon’s Biggest Rivals - WSJ
Sept. 20, 2019 | WSJ | By James V. Grimaldi.

Walmart, Oracle and mall owner Simon Property Group are secret funders behind a nonprofit that has been highly critical of the e-commerce giant

About 18 months ago a new nonprofit group called Free and Fair Markets Initiative launched a national campaign criticizing the business practices of one powerful company: Amazon.com Inc. AMZN -1.50%

Free and Fair Markets accused Amazon of stifling competition and innovation, inhibiting consumer choice, gorging on government subsidies, endangering its warehouse workers and exposing consumer data to privacy breaches. It claimed to have grass-roots support from average citizens across the U.S, citing a labor union, a Boston management professor and a California businessman.

What the group did not say is that it received backing from some of Amazon’s chief corporate rivals. They include shopping mall owner Simon Property Group Inc., SPG 0.27% retailer Walmart Inc. WMT -0.11% and software giant Oracle Corp. ORCL 0.19% , according to people involved with and briefed on the project. Simon Property is fighting to keep shoppers who now prefer to buy what they need on Amazon; Walmart is competing with Amazon over retail sales; and Oracle is battling Amazon over a $10 billion Pentagon cloud-computing contract.

The grass-roots support cited by the group was also not what it appeared to be. The labor union says it was listed as a member of the group without permission and says a document purporting to show that it gave permission has a forged signature. The Boston professor says the group, with his permission, ghost-wrote an op-ed for him about Amazon but that he didn’t know he would be named as a member. The California businessman was dead for months before his name was removed from the group’s website this year.

Free and Fair Markets, or FFMI, declined to reveal its funders or disclose if it has directors or a chief executive.

“The bottom line is that FFMI is focusing on the substantive issues and putting a spotlight on the way companies like Amazon undermine the public good—something that media outlets, activists, and politicians in both parties are also doing with increasing frequency,” it said in a statement in response to questions from The Wall Street Journal. “If Amazon can not take the heat then it should stay out of the kitchen.”

The creation of a group aimed solely at Amazon is an indication of the degree to which competing companies have coalesced to counter the growing and accumulated power of Amazon and how far competitors are increasingly willing to go to counter-strike. Lobbyists that exaggerate the extent of their grass-roots support—a practice known as “AstroTurf lobbying”—are common in Washington, but it is rare for a nonprofit group to be created for the sole purpose of going after a single firm.

Amazon is facing additional opaque opposition as well, with websites and articles popping up portraying the software giant as the Evil Empire. The website Monopolyamazon.com, which does not disclose who is behind it and registered its web address anonymously, includes a handful of articles calling on the Defense Department to reject Amazon’s bid for a $10 billion cloud-computing contract. For months last year, an anti-Amazon dossier circulated in Washington alleging conflicts of interest in the Pentagon procurement process and a chart from the document later reached President Trump before he asked for a review of the Amazon bid.

Free and Fair Markets is run by a strategic communications firm, Marathon Strategies, that works for large corporations, including Amazon rivals. Marathon founder Phil Singer is a veteran political operative who has worked as a top aide to prominent Democrats, including Sen. Chuck Schumer of New York and on Hillary Clinton ’s 2008 presidential campaign.

In a statement, Mr. Singer defended the group. “FFMI is not obligated to disclose its donors and it does not,” Mr. Singer said.

Marathon initially asked for a fee of $250,000 per company to fund the anti-Amazon group, according to a person at one of the companies approached. Among those invited to fund the group but declined were a trade association that includes members who compete with Amazon, and International Business Machines Corp. , according to people familiar with the contacts. IBM, which declined to comment, previously was a client of Marathon.

In a statement, Amazon said, “The Free & Fair Markets Initiative appears to be little more than a well-oiled front group run by a high-priced public affairs firm and funded by self-interested parties with the sole objective of spreading misinformation about Amazon.”

Simon Property, the world’s largest mall landlord, declined to comment. Simon does not have any brick-and-mortar Amazon stores in its roughly 200 malls, outlets and open-air centers in the U.S., whereas its peers with smaller portfolios count multiple Amazon stores in theirs. The Indianapolis-based landlord recently launched its own online shopping platform, Shoppremiumoutlets.com.

Walmart funds the organization indirectly by paying an intermediary that pays for Free and Fair Markets, according to sources familiar with the arrangement. Walmart is a client of Marathon.

Walmart spokesman Randy Hargrove said, “We are not financial supporters of the FFMI but we share concerns about issues they have raised.” Mr. Hargrove declined to comment further.

The group’s aim is to sully Amazon’s image on competition, data-security and workplace issues, while creating a sense of grass-roots support for increased government regulatory and antitrust enforcement, according to people familiar with the campaign.

Free and Fair Markets has lobbied the government for legislation and investigations of Amazon, sent dozens of letters and reports to Congress and staff, according to congressional staffers, published scores of op-eds in local and online media and tweeted hundreds of social media posts blasting Amazon.

Over the past year, many of the actions advocated by the group have gained traction. Amazon has come under increasing antitrust scrutiny from the Department of Justice, Federal Trade Commission, states attorneys general and the European Union. In New York, Amazon backed out of plans to open a second headquarters in Long Island City after facing political opposition. Free and Fair Markets campaigned against government subsidies to support the site and tweeted more than 300 times on the topic.

Oracle provided financial support as part of an all-out strategy to stop Amazon from getting a $10 billion mega-contract to handle cloud computing for the Defense Department. The Pentagon eliminated Oracle as a bidder in the first round. Kenneth Glueck, who runs Oracle’s office in Washington, confirmed that the computer technology firm has contributed to the effort.

A goal of the organization was achieved in July when President Trump said he wanted to conduct a review of the contract. In August, the secretary of defense said he was investigating conflict-of-interest allegations surrounding the $10 billion contract known as Joint Enterprise Defense Infrastructure, or JEDI. At the urging of President Trump, the bid award has been put on hold during the review.

Mr. Trump, a frequent critic of Amazon, cited complaints about the project from several of Amazon’s competitors, which in addition to Oracle included IBM and Microsoft Corp. , saying he had heard the contract “wasn’t competitively bid.” The contract has not been awarded and Microsoft remains one of the two remaining bidders.

Though Free and Fair Markets has contacted members of Congress and the administration, it has not registered as a lobbying organization. Such groups are required to file with Congress if more than 20% of their work involves lobbying. Marathon said it complies with lobby disclosure rules.

None of the articles notes that Mr. Engel’s group is funded by rivals of Amazon.

A spokeswoman for The Hill said the publication was unaware of the funding sources and failure to disclose such payments violates a standard written agreement all op-ed writers are required to sign.

Sandy Shea, managing editor of opinion for the Inquirer’s parent company, the Philadelphia Media Network, said, “We aren’t equipped to investigate the makeup or structure of a nonprofit that submits a piece.”

Bill Zeiser, RealClearPolicy editor, said RealClearMedia publishes “commentary on politics and public policy from a wide array of sources. These submissions are assessed on their editorial merits.”

Representatives of the Post-Gazette and Chronicle did not respond to emails.

In an interview earlier this year, Mr. Engel said the motive of the group was not to promote the views of Amazon’s rivals. He said Amazon has been the only target because its business tactics run counter to the group’s goal of free and fair markets. “The one organization that feels it stands above that is Amazon,” Mr. Engel said.

Marathon did not make Mr. Engel available for comment a second time after the Journal determined that rivals were funding the group.

Mr. Engel and his group have been quoted in publications, including once each in The Wall Street Journal and The New York Times. None said who funded the group.

One article about Free and Fair Markets was commissioned by Marathon.

Last October, an Iowa writer and consultant, Jeff Patch, published an article on RealClearPolicy.com, a news website known for political coverage, about a report by Free and Fair Markets critical of Amazon’s record of hiring and firing women. “Many [women] were fired after Amazon concocted pretexts for their terminations,” Mr. Patch wrote.

Mr. Patch, who has worked as a journalist and a staffer for a Republican congressman and conservative think tanks, did not disclose in his article at the time that he was a paid contractor for Marathon.

Bank statements and invoices reviewed by the Journal show that Mr. Patch billed Marathon, and was paid thousands of dollars… [more]
Amazon  clandestine  contra-Amazon  countermeasures  counternarratives  dark_side  e-commerce  grass-roots  lobbying  lobbyists  nonprofit  Oracle  Simon_Properties  sophisticated  Wal-Mart 
2 days ago by jerryking
How Newt Gingrich Crippled Congress | The Nation
 No single person bears more responsibility for how much Americans hate Congress than Newt Gingrich. Here's what he did to it.
congress  corruption  newt.gingrich  economics  accountability  lobbyists  budgeting  research 
14 days ago by po
Bruce Bartlett: Gingrich and the Destruction of Congressional Expertise - The New York Times
A decline in the ability of Congressional staffs to provide independent research can be traced to Newt Gingrich’s tenure as speaker, and his recent call to abolish the Congressional Budget Office has the same aim, an economist writes.
congress  corruption  newt.gingrich  economics  accountability  lobbyists  budgeting  research 
14 days ago by po
I will not mourn an evil man
Years from now, when he is nothing more than a memory, and his name is on a few buildings, sea levels will continue to rise. Polar bears, among other species, will be gone, the result of a combination of deforestation, climate change, and loss of habitat. We will lose what we once took for granted. David Koch could have made a positive difference for change. Instead, he chose to fund conservative think tanks such as the CATO Institute and Americans For Prosperity, spreading lies about climate change, undermining the media, and subverting scientific research. All so he could continue to make billions in the fossil fuel industry. 

Our children will have to deal with his legacy, and it is a legacy that is not complicated. He willfully and gleefully supported a system that gave us Donald Trump. He helped to vilify the media and scientists. Will I shed a tear? Will I show any regret over his death? No. Do I think it is in any way tasteless to point out after his death the evil he did in his life? Not at all. I will not mourn him; what I will mourn is the damage he did in his lifetime to our political system and to Mother Earth. I just hope for my son’s sake that it is not too late to save the planet.
climate  climatechange  climatecrisis  future  politics  usa  rightwing  oil  capitalism  lobbying  lobbyists  markets 
20 days ago by msszczep
🇦🇺 How to Sell a Massacre P2 | Al Jazeera Investigations
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<p>🇦🇺 How to Sell a Massacre P2 | Al Jazeera Investigations In the second of a two part series: A three-year Al Jazeera investigation into the US gun lobby has uncovered an effort by an Australian political party to seek millions of dollars in political funding while offering to soften strict, anti-gun laws in Australia. […]</p>
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april 2019 by snapeplus
The are often themselves lawyers. They recycle themselves in white-collar crime, entering the political…
lobbyists  from twitter_favs
april 2019 by javierruiz
Why Should We Care About Qatar’s Influence? - Security Studies Group
—Qatar’s money has been able to buy lobbyists who have “encouraged” a number of influential people to soften their line on Qatar’s support for terrorism and Islamism or take up rhetorical arms against its chief regional rivals, especially Saudi Arabia and the United Arab Emirates.

—It’s been able to buy media outlets that create the battle-space or the environment that leads, as we have seen, in very short order, to dramatic policy shifts designed to benefit Qatar.

—And it’s been able to cement pro-Qatar narratives in the minds of the professional Beltway foreign policy elite through massive grants to think tanks, universities and, perhaps most troublingly, shrewd use of the CENTCOM base at al-Udeid as a platform from where Qatar could ingratiate itself to a generation of U.S. military commanders and policymakers.
Qatar  lobbyists  DCSwamp 
february 2019 by astrogirl

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