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Washington, D.C.’s attorney general sued Amazon on Wednesday, accusing the company of covertly depriving residents in certain ZIP codes in the nation’s capital from access to Prime’s high-speed delivery.

The lawsuit from AG Brian Schwalb alleges that, since 2022, Amazon has “secretly excluded” two “historically underserved” D.C. ZIP codes from its expedited delivery service while charging Prime members living there the full subscription price. Amazon’s Prime membership program costs $139 a year and includes perks like two-day shipping and access to streaming content.

“Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide,” Schwalb said in a statement. “While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one zip code is worth less than a dollar in another.”

Amazon spokesperson Steve Kelly said in a statement it’s “categorically false” that its business practices are “discriminatory or deceptive.”

“We want to be able to deliver as fast as we possibly can to every zip code across the country, however, at the same time we must put the safety of delivery drivers first,” Kelly said in a statement. “In the zip codes in question, there have been specific and targeted acts against drivers delivering Amazon packages. We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”

Kelly said Amazon has offered to work with the AG’s office on efforts “to reduce crime and improve safety in these areas.”

In June 2022, Amazon allegedly stopped using its own delivery trucks to shuttle packages in the ZIP codes 20019 and 20020 based on concerns over driver safety, the suit states. In place of its in-house delivery network, the company relied on outside carriers like UPS and the U.S. Postal Service to make deliveries, according to the complaint, which was filed in D.C. Superior Court.

The decision caused residents in those ZIP codes to experience “significantly longer delivery times than their neighbors in other District ZIP codes, despite paying the exact same membership price for Prime,” the lawsuit says.

Data from the AG shows that before Amazon instituted the change, more than 72% of Prime packages in the two ZIP codes were delivered within two days of checkout. That number dropped to as low as 24% following the move, while two-day delivery rates across the district increased to 74%.

Amazon has faced prior complaints of disparities in its Prime program. In 2016, the company said it would expand access to same-day delivery in cities including Atlanta, Chicago, Dallas and Washington, after a Bloomberg investigation found Black residents were “about half as likely” to be eligible for same-day delivery as white residents.

The ZIP codes in Schwalb’s complaint are in areas with large Black populations, according to 2022 Census data based on its American Community Survey.

The Federal Trade Commission also sued Amazon in June 2023, accusing the company of tricking consumers into signing up for Prime and “sabotaging” their attempts to cancel by employing so-called dark patterns, or deceptive design tactics meant to steer users toward a specific choice. Amazon said the complaint was “false on the facts and the law.” The case is set to go to trial in June 2025.

According to Scwalb’s complaint, Amazon never communicated the delivery exclusion to Prime members in the area. When consumers in the affected ZIP codes complained to Amazon about slower delivery speeds, the company said it was due to circumstances outside its control, the suit says.

The lawsuit accuses Amazon of violating the district’s consumer protection laws. It also asks the court to “put an end to Amazon’s deceptive conduct,” as well as for damages and penalties.

To get packages to customers’ doorsteps, Amazon uses a combination of its own contracted delivery companies, usually distinguishable by Amazon-branded cargo vans, as well as carriers like USPS, UPS and FedEx, and a network of gig workers who make deliveries from their own vehicles as part of its Flex program.

Amazon has rapidly expanded its in-house logistics army in recent years as it looks to speed up deliveries from two days to one day or even a few hours. In July, the company said it recorded its “fastest Prime delivery speeds ever” in the first half of the year, delivering more than 5 billion items within a day.

In relying on its own workforce, Amazon has assumed greater control over its delivery operations.

In his complaint, Schwalb cites an internal company policy that says Amazon may choose to exclude certain areas from being served by its in-house delivery network if a driver experiences “violence, intimidation or harassment.” The company relies on UPS or USPS to deliver packages in excluded areas.

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Apple shares pop 5% ahead of Trump-Cook investment announcement at White House

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Apple shares pop 5% ahead of Trump-Cook investment announcement at White House

Apple CEO Tim Cook speaks during the Apple Worldwide Developers Conference (WWDC) on June 09, 2025 in Cupertino, California.

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Apple shares popped 5% Wednesday, ahead of an Oval Office event touting an update to the company’s stated plans to spend and invest in the U.S.

CEO Tim Cook will join President Donald Trump for the announcement set for 4:30 p.m. ET.

Apple will up its previous commitment, made in February, from $500 billion to $600 billion over the next four years, a White House official told CNBC.

It will also announce a new manufacturing program called the American Manufacturing Program, the official said.

Cook has had a mixed relationship with Trump over the past year. While Trump has praised the Apple CEO in the past, in recent months he has said he has a “problem” with the executive and has pushed for Apple to assemble its iPhones in the U.S., not China or India.

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Apple faces over $1 billion in increased costs this quarter because of Trump’s tariffs on imports —primarily related to China — and Cook reminded investors last week that “the vast majority” of its products would be subject to pending new tariffs under a Section 232 investigation.

“We obviously try to optimize our supply chain, and ultimately we will do more in the United States,” Cook said.

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Match Group pops 10% as dating company shows early signs of a turnaround

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Match Group pops 10% as dating company shows early signs of a turnaround

Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images

Match Group shares popped more than 10% on Wednesday after the online dating company issued upbeat guidance and said new products are showing promise as it attempts to turnaround its business.

The Dallas-based company said it expected revenues between $910 million and $920 million in the current quarter, beating a $890 million estimate from analysts polled by FactSet.

“We are operating like a company that is just getting started, and we believe the best chapters of the category and company are still ahead,” said CEO Spencer Rascoff during an earnings call Tuesday. “We are moving with urgency, we are obsessed with the product and we are building for the long term.”

Over the last year, Match and the broader online dating industry have grappled with slowing user engagement. The company has added more tools and features to its apps, including Tinder and Hinge, to lure back customers, especially Gen Z.

Match has also been the target of activists investors such as Starboard Value, which has pushed the company to innovate, cut costs and improve profitability or consider going private.

In an effort to revamp its business, Match appointed Zillow co-founder Rascoff as its new CEO in February. Under his direction, the company has implemented new artificial intelligence-powered tools and slashed roles.

Match also added new features such as AI-powered discovery to many of its services and a double date feature on Tinder. Rascoff on Tuesday said that 90% or customers using this feature are under age 30.

The company will also target the younger market with features geared toward college students and is planning to reinvest $50 million into new product development, Rascoff said.

In 2026 and 2027, Rascoff said he expects AI innovation and international growth to expand its Hinge platform’s leadership as Tinder becomes a “low-pressure, serendipitous experience designed for Gen Z.” Hinge, he said, is also on track to deliver quarterly year-over-year growth in 2025.

“Across the board, we believe the category will enter a new era, with renewed trust, strong demand and long-term growth potential,” he said.

Match posted in-line earnings of 49 cents per share. Revenues reached $864, topping the $854 million expected by analysts.

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Is Gen Z done with dating apps? Grindr CEO on generational trends

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OpenAI is giving ChatGPT to the government for $1

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OpenAI is giving ChatGPT to the government for

OpenAI CEO Sam Altman speaks during the US Federal Reserve Board of Governors’ “Integrated Review of the Capital Framework for Large Banks Conference” at the Federal Reserve in Washington, DC, on July 22, 2025.

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OpenAI on Wednesday announced it will offer its ChatGPT Enterprise product to U.S. federal agencies for $1 through the next year, making its technology available to the federal executive branch workforce at “essentially no cost.”

The company has been working to deepen its ties to lawmakers and regulators in recent months, and it will open its first office in Washington, D.C., early next year.

OpenAI said participating agencies will get access to its frontier models through ChatGPT Enterprise, and it will also offer access to features like Advanced Voice Mode for an additional 60-day period.

The company has partnered with the U.S. General Services Administration to launch the initiative.

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“Helping government work better – making services faster, easier, and more reliable—is a key way to bring the benefits of AI to everyone,” OpenAI said in a blog post.  

In June, OpenAI launched a new offering called OpenAI for Government and said it was awarded a contract of up to $200 million by the U.S. Department of Defense.

The company is currently engaging in talks with investors about a potential stock sale at a valuation of roughly $500 billion, as CNBC previously reported.

OpenAI announced a $40 billion funding round in March at a $300 billion valuation, by far the largest amount ever raised by a private tech company.

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