FTC alleges Amazon executives used encrypted messaging app Signal to destroy evidence in antitrust case

In a recent development surrounding the Federal Trade Commission's (FTC) ongoing antitrust lawsuit against Amazon, FTC lawyers have filed a submission alleging that top executives at the tech giant utilised Signal's disappearing messages feature to obliterate pertinent evidence. The FTC's lawsuit, which revolves around Amazon's purported creation of a clandestine pricing algorithm known as "Project Nessie," potentially resulting in over $1 billion in additional profits, has garnered significant attention.

According to a report by The Washington Post, owned by Amazon founder and former CEO Jeff Bezos, Amazon is just one among several companies accused of resorting to encrypted messaging platforms like Signal, capable of automatically erasing messages permanently. This practice of using encrypted messaging apps has drawn parallels to previous legal battles, including the trial of Sam Bankman-Fried for fraud, and Google's courtroom defeat against Epic Games, where deleted chats emerged as contentious points.

The latest filing by the FTC includes screenshots depicting a Signal conversation between two Amazon executives, wherein they exchanged messages such as, "Are you feeling encrypted?" before activating disappearing messages. Notably, the filing identifies Bezos, current CEO Andy Jassy, general counsel David Zapolsky, former CEO of worldwide operations Dave Clark, and other executives as Signal users. Bezos, described as a "heavy Signal user" in the document, purportedly encouraged others to adopt the app, potentially influenced by the 2018 hacking incident involving his personal cellphone.

The FTC contends that Amazon's failure to instruct employees to preserve messages sent via the app until over 15 months after being notified of the investigation suggests the likely destruction of relevant information. The FTC lawyers are now seeking discovery into Amazon's preservation efforts to assess the extent of potential data loss. Despite previous requests for documents concerning Amazon's guidance to employees regarding ephemeral apps, the FTC alleges that Amazon has largely withheld requested materials.

Should the court find Amazon negligent in its failure to retain data pertinent to the case, the company could face sanctions. Moreover, if the court determines these failures were deliberate, the consequences for Amazon could escalate further.