Business

Privacy ‘Fire’-storm

Amazon’s new Web browser is raising eyebrows in Congress.

Rep. Edward Markey (D-Mass.) sent a letter to Amazon CEO Jeff Bezos yesterday expressing his privacy concerns with the e-commerce giant’s soon-to-be-launched Kindle Fire tablet.

Amazon developed a Web browser called Silk to run on the new device, which was unveiled last month and will be in stores Nov. 15. The browser facilitates speedy Internet surfing but also directs all traffic through its cloud service, allowing it to collect a treasure trove of consumer data — something at the heart of Markey’s privacy concerns.

“Consumers may buy the new Kindle Fire to read ‘1984,’ but they may not realize that the tablet’s ‘Big Browser’ may be watching their every keystroke when they are online,” said a statement from Markey, who has launched a number of privacy inquiries into tech companies, including Google, Facebook and Apple.

However, this is the first such government probe of Amazon, and Markey’s office said yesterday that the ubiquity of mobile devices has opened a new level of corporate access to consumer habits.

Markey has given Bezos 15 days to respond to the letter, which asked for more information about the Kindle Fire and how the company plans to safeguard consumer privacy.

The Silk browser is particularly troubling because it gives Amazon the ability to track users across the Web as they surf and shop. As a default setting, all users’ online activity is recorded on Amazon servers.

“By coupling the Fire with Silk, Amazon can essentially track each and every Web click of its customers,” the congressman’s letter said. “Amazon will know where people shop, what items they buy, when they buy them, and how much they pay.”

Amazon has said consumers can opt-out of routing their activity through its servers, but that slows down their connection. Markey’s office said the congressman advocates “opt-in” solutions when it comes to privacy issues.

Amazon also has said the data it keeps is anonymous. The company did not return a request for comment yesterday.

The letter asked Amazon to detail the type of information it will collect, what it will do with that information, and how it plans to inform consumers of its privacy policies.

The Kindle Fire is already a big seller through online pre-orders. One of the major selling points is its price, which at $200 is less than half the price of the entry-level iPad, the top-selling tablet.

While Amazon is likely taking a loss of about $50 on each Fire it sells, according to analysts, the company hopes the tablet generates sales through its online stores, which will be easily accessible from the device.

Current Amazon customers who buy the tablet already have their billing information on file, ready for one-click purchasing of goods and media content, such as movies and music.

The Kindle tablet has been hailed as one of the top threats to Apple’s iPad rule and has increased the pressure on rivals to lower their prices.