Parler accused Amazon.com, Inc (NASDAQ: AZMN) of favoring Twitter Inc (NYSE: TWTR) in a lawsuit filed Monday after the former shut down its services following last week’s Capitol Hill riot.
What Happened: The social network — favored by President Donald Trump’s supporters — in a complaint filed with the U.S. District Court in Seattle said it was dealt a “death blow” by the Jeff Bezos-led company when its web hosting services were suspended on Sunday night, as first reported by Geekwire.
Parler is reportedly claiming that Amazon Web Services (AWS) did not take similar action against Twitter despite a recent top-trending tweet on the rival network called for the execution of Vice President Mike Pence.
“AWS false claims have made Parler a pariah,” and the service termination “is the equivalent of pulling the plug on a hospital patient on life support,” the social media company claimed.
Why It Matters: Parler claims that it tried to find an alternative service provider but its efforts “have fallen through.”
Amazon said it respects Parler’s right to moderate content on its platform but the social network has been “unable or unwilling” to remove the “significant” and growing amount of content that “encourages and incites violence,” reported Reuters.
Aside from reinstatement of its AWS account, Parler is seeking triple damages claiming it had over 12 million users and stands to lose millions more as conservatives encourage migration from Twitter to its services, as per Reuters.
Price Action: Amazon shares closed 2.15% lower at $3,114.21 on Monday and gained 0.31% in the after-hours session. On the same day, Twitter shares closed nearly 6.4% lower at $48.18 and gained 0.33% in the after-hours session.
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