That cannot possibly be true.

Do you imagine the fallout if it came out ( and how would in not, thousands of people would have passed through, one disgruntled employee is enough) ? AWS would lose most customers within a few years, Amazon.com as well ( disgusted buyers and sellers), there'd be lawsuit everywhere. I really don't think anyone in Amazon is stupid enough to risk a trillion dollar business for some potential competitive advantage on whatever sold on Amazon.com