Amazon Sued Over Its New Cheap Home Internet Service As Investors Push Back





Blue Origin launch

Investors filed a lawsuit against Amazon, alleging the company didn’t properly field competing proposals before choosing Jeff Bezos’ Blue Origin startup to launch the satellites for its new home internet service, code-named Project Kuiper

Amazon decided to accept Blue Origin’s launch contract after spending less than an hour reviewing it, according to the suit’s plaintiff, the Cleveland Bakers and Teamster’s Pension Fund. The contracts put Blue Origin, United Launch Alliance and Arianespace in charge of plans to launch the 3,236 satellite constellation, SpaceNews reported via Delaware Business Court Insider (a paywalled publication.) 

The suit says Jeff Bezos’ role as the founder of both Amazon and Blue Origin created a conflict of interest. Bezos’ unique position allowed him to “identify and negotiate with launch providers for Amazon, while also free to negotiate against Amazon on behalf of Blue Origin.” In addition, the suit argues that SpaceX wasn’t considered despite “being the launch provider with the most proven track record and the lowest prices in the industry” because of the rivalry between Bezos and Elon Musk, the spaceflight company’s founder. 

“The claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process,” an Amazon spokesperson told Cord Cutters News.

SpaceX wasn’t immediately available for comment. 

Project Kuiper would operate similarly to SpaceX’s Starlink service, offering high speed internet from space. This means Amazon’s service could potentially average close to Starlink’s 90.55 Mbps down and 9.33 Mpbs up with a latency for 43. Amazon is reportedly hoping to be a more affordable option at under $100 a month. 

Amazon aims to launch the first satellites for its new home internet service later this month. The launch will let Amazon test the service before beginning a larger production in 2024. 

Image credit: Blue Origin

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