T.C. Mem o. 2 01 4- 24 5

UNITED STAT ES TAX COURT
AMAZON.COM, INC. & SUBS IDIARIES, Pe ti ti on er v . COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 31 19 7- 12 . Fi le d Dec em be r 10 , 20 14 . Jo hn B. Mag ee, San fo rdW . Stark , Ju li a Mara Kaza ks , andRajiv Mad an , for pe ti ti on er. Ji ll A. Fris ch , Mel is saD. Lang , Llo y d T. Si lb erzwe ig , Ann e O’Brien Hin te rm ei st er, an d M ary E. W ynn e, fo r res po nd en t.

MEMORANDUM OPINION LAUBER, Ju dg e: The In te rn al Rev enue Serv ic e (IR S o r res po nd en t) d et erm in edun de r se ct io n 4 82 subs tant ia l d efi ci en ci es inpe ti ti on er’s Fed eral in co m e ta x- 2 -

[* 2] fo r 20 05 an d 2 00 6. The d efi ci en ci es st em fro m a co stsh ari ng arrang em en t 1 (CSA) e xe cu te d b etweenpe ti ti on er an d Am azo n Eu ro pe Hol di ng s Tec hn ol og ie s SCS (AEHT), a Lu xe m

bo ur g a ffi li at e. Inen te rin g i nt o the CSA, pe ti ti on er tra ns ferr edpre ex is ti ng in tang ib le ass et s t o AEHT; the pa rti es ag reedto sh are fu tu re i nt an gi bl e d ev el op m en t co st s (I DCs ). Thi s ca se wil l re qu ire th e Co urt t o de te rm in e th e p ro pe r am ou ntof AEHT’s bu y -in ob li ga ti on with re sp ectto th e tra ns ferr edpro pe rty (in cl ud in g t ech no lo gy, trad em ark s, an d c us to m er i nf orm at io n) un de r se ct io n 1 .48 2- 7( a)(2 ) an d (g )(2 ), In co m e Tax Reg s. The Co urt wi ll als o b e 2 requi redto ass es s the po rti on of p et it io ne r’s co st s p ro pe rly all oc ab le to IDCs , whi chwil l d ic ta te inpa rt t he co st -s ha rin g p aym en ts th atAEHT is requi redto m ak e. See s ec. 1 .48 2- 7( a)(1 ), (d )(1 ), In co m e Tax Reg s. The Co urt h el d apa rti al tri al of t hi s ca se on Octo be r 24 , 20 14 , inW as hi ng to n, D.C., an d afurth er tria l b etweenNov em be r 3 a ndNov em

be r 26 , 20 14 , in Seat tl e, W as hi ng to n. Th e Co urt h as sch edul edfurth er tria l p ro ceed in gs inSeat tl e be twee n Dec em

be r 15 an d Dec em

be r 23 , 20 14 . Unl es s o th erwi se in di cat ed , all st atut ory refe ren ces are t o t he Int ern al 1 Rev enue Co de ineffe ctforth e ta x years a t i ss ue , andall Ru le refe ren ces are t o t he Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e. Sect io n 1 .48 2- 7, In co m e Tax Reg s., was red es ig na te d s ect io n 1 .48 2- 7A, 2 In co m e Tax Reg s., wit h t he pro m ul ga ti on of n ew reg ul at io ns effe ct iv e Ja nu ary 5, 20 09 . See T.D. 94 41 , 20 09 -7 I.R.B. 4 60 .- 3 -

[* 3] The qu es ti on curren tl y be fo re the Co urt i s wh ethe r to qu as h atri al subp oe na se rv edby the IRS o n J eff B ezo s, the fou nd er, ch ai rm anof t he bo ardof d ire ct or s, an d c hi ef ex ecu ti ve off

ic er (C EO) of Am azo n.c om . On Oct ob er 2 1, 2 01 4, p et iti on er fi le d am ot io n t o qua sh or m od ify subp oe na . Res po nd en t fi le d ares po ns e on Nov em

be r 25 , 20 14 , andth e Co urt s ub se qu en tl y he ardora l ar gu m en t o n t he
m ot io n. As st at edat t he co nc lu si on of t ha t ar gu m en t, we wi ll gra ntth e m ot io n t o qu as h. Bac kg ro un d The pa rti es co nduc te d e xt en si ve di sc ov ery in th is cas e. Res po nd en t i ni ti al ly so ug htto de po se up to 48 factwitne ss es , andpe ti ti on er fi le d am ot io n fo r pr ot ecti ve ord er p ur su an t t o R

ul e 1 03 see ki ng to li m itth e to ta l n um be r of factwitne ss es th atres po nd en t co ul d d ep os e. Res po nd en t fi le d ares po ns e in di cat in g t ha t h e wis he d t o d ep os e o nl y

16 party andno np arty

factwitne ss es ; re sp on de ntdi d n ot li stMr. Bez os as o ne of t ho se po te nt ia l wi tn es se s. By ord er d at edApri l 2 5, 2 01 4, th e Co urt p erm it te d re sp on de ntto de po se a to ta l o f 12 pa rty andno np arty fact witne ss es . Mr. Bez os was n oton e o f th e in di vi du al s wh om res po nd en t el ect edto de po se . Res po nd en t fi rs t i de nt ifi edMr. Bez os as apo te nt ia l wi tn es s i n S ep te m be r 20 14 . On Oct ob er 1 4, 2 01 4, co un se l fo r pe ti ti on er ac cep te d s erv ic e o f a tria l s ub
-- 4 -

[* 4] po en a adtes ti fic an du m on Mr. Bez os . In h is pre tri al m em or an du m , res po nd en t l is te d M r. Bezo s as a po te nt ia l wi tn es s an d i nd ic at edth atth e to pi cs of hi s t es ti m on y

wou ldin cl ud e th e fo ll owi ng : the hi st ory of Am azo n; Am azo n’s gr owt h a ndsu cces s; on -li ne ret ai l an d o th er b us in es se s an d p ro du ct s; Am azo n’s eco m m erce tec hn ol og y ; an d Am azo n’s re st ru ctur in g b etween20 04 an d 2 00 6. Mo re rece nt ly, res po nd en t s tate d h is de si re t o e li ci t t es ti m on y fro m Mr. Bez os onth e fo ll owi ng 15 subjec ts : “ th e Am azo n b ran d” ; ea rly sp en di ng on m ark et in g a nd adve rti si ng ; the fin an ci al m etric s u se d b y Am azo n i n m ak in g i m

po rtantde ci si on s; Am azo n’s i nt ern al di sc ou ntrat e in ev al ua ti ng in ve st m en ts ; s ta te m en ts m ad e in Am azo n’s 1 99 7 a nd19 99 let te rs to sh areh ol de rs an d c ert ai n a nn ua l re po rts ; Am azo n’s i nt el le ctua l p ro pe rty m an ag em en t; Am azo n’s R& D bu dg et ; Am azo n’s gr owt h ra te s; earl y

Am azo n ri sk s v ers us ris ks in20 04 -2 00 5; Am azo n’s g eo gr ap hi c ris ks ; Am azo n’s b us in es s s tra te gy as “ a fl y whe el m od el ”; st at em en ts in pe ti ti on er’s ex pe rt wi tn es s re po rts ; m an ag em en t’s fi na nc ia l p ro jecti on s; th e tra ns fer o f in tang ib le s t o AEHT; an d M r. Bezo s’ “ vi si on forAm azo n.” On Oct ob er 2 1, 2 01 4, p et it io ne r fi le d am ot io n t o qua sh th e tr ia l s ub po en a. Pet it io ne r la te r supp le m en te d t hi s m ot io n wi th anaffi da vi t fr om Mr. Bez os . The affi da vi t av ers th atap pe ari ng at t ria l wo ul d re qu ire a si gn ifi can t co m mit m en t o f- 5 -

[* 5] ti m e b y

Mr. Bez os an d wo ul d c au se a subs tant ia l d is rupt io n o f hi s m an ag em en t re sp on si bi li ti es du rin g Am azo n’s p eakho li da y sea so n. The Co urt i nd ic at edth atitwou ldpo stpo ne rul in g o n t he m ot io n t o qua sh un ti l af te r pe ti ti on er h adco m

pl et edpre se nt at io n o f it s ca se inch ie f, whi chwou ld en ab le th e Co urt b ette r to ass es s re sp on de nt ’s nee d fo r Mr. Be zo s’ tes ti m on y . To da te , th e Co urt h as he ard17 da y s o f tr ia l t es ti m on y , in cl ud in g the tes ti m on y of 2 1 Am azo n fa ctwitne ss es . Of th es e 2 1 fa ctwitne ss es , si x a re o r were m em be rs of Am azo n’s s en io r le ad ers hi p t eam , kn own at Am azo n a s the “ S-Team .” Mem be rs of th e S-Tea m

rep orte d d ire ct ly to M r. Bezo s, re gu larly att en de d m eet in gs with hi m (in cl ud in g c ert ai n b oa rdof d ire ct or s m eet in gs ), an d wer e th or ou gh ly famil iar with h is de ci si on m ak in g p ro ces s an d h is cu st om er-c en tri c p hi lo so ph y forrun ni ng th e co m pany. The S-Team

m em be rs who ha ve tes ti fie d s o fa r in cl ud e Am azo n’s ch ie f te ch no lo gy offi cers , on e o f who m fun ct io ne d a s the co m

pa ny’ s n um

be r two off

ici al , as wel l as Am azo n’s ch ie f fi na nc ia l o ffi cer, h eadof i nt ern at io na l re ta il , hea d of op erat io ns , andhe adof b us in es s d ev el op m en t. Res po nd en t h as li st edtwo ad di
ti on al S-Team

m em be rs as p ot en ti al witne ss es , andbo th are ex pe ct edto tes ti fy whe n tria l re su m es on Decem be r 15 , 20 14 . Of th e ei gh t cu rren t an d fo rm er STeam m em be rs who ha ve tes ti fie d o r wil l t es ti fy , res po nd en t d ep os edsev en .- 6 -

[* 6] The 21 factwitne ss es who ha ve tes ti fie d s o far ha ve th or ou gh ly cov ered each of t he 15 subjec ts on whi chres po nd en t p ro po se s t o e xam in e Mr. Be zo s. Th e Co urt h as he ardtes ti m on y fro m all rel ev an t d ep art m en ts at Am azo n, i nc lu di ng te ch no lo gy, ope rat io ns , fin an ce, an d t ax . This tes ti m on y ha s s pa nn edall pe rio ds of Am azo n’s l ife as apubl ic co m pa ny, from

19 97 to th e p res en t. The va stm ajor ity of th e subjec ts li st edby resp on de ntha ve be enco ve redby test im on y of t hr ee o r m or e Am azo n fa ctwitne ss es , in cl ud in g s en io r le ve l m an ag ers , m id dl e m an ag ers , an d juni orst affe rs (who actua ll y pre pa redth e d oc um en ts th atare the subjec t o f res po nd en t’s i nt eres t). Re sp on de ntha s l is te d a no th er t enAm azo n e m pl oyees a s

“ m ay cal l” witne ss es forhi s ca se inch ie f. On No ve m

be r 26 , 20 14 , th e Co urt h eardora l ar gu m en t o n t he m ot io n t o qu as h. Re sp on de ntin fo rm edth e Co urt tha t, i f Mr. Be zo s i s ca ll ed , hi s t es ti m on y

“ is li ke ly to b e le ss th ana da y .” Co un se l fo r res po nd en t s ta te d t ha t, b ecau se Mr. Bez os ha d n otbe ende po se d, re sp on de ntm ig htno t ca ll hi m as awitne ss ev enif th e m ot io n t o qua sh is de ni ed
. Dis cu ss io n Inth e Tax Co urt, wh ena subp oe nais is su edso le ly for the att en da nc e o f a witne ss at t ria l an d tha t p ers on ob jects th eret o, h e o r sh e m ay m ov e fo r a p ro te ct iv e or de r pu rs ua ntto Ru le 10 3( a) o r fo r anord er qua sh in g o r m od ifyin g t he subp oe na- 7 -

[* 7] pu rs ua ntto rul e 4 5( d) of t he Fed eral Ru le s o f Ci vi l Pr oc edur e. See Gran db ou ch e v . Comm is si on er, 9 9 T.C. 6 04 , 61 6- 61 7 (1 99 2) ; Ru le 1(b ) (“ Whe re in an y in st an ce the re i s n o app li cab le rul e,” the Co urt m ay gi ve “pa rti cu lar wei gh t to th e Fed eral Ru le s o f Ci vi l Pr oc edur e.”). Und er ei th er o f th es e ru le s, the Co urt 3
m ay qu as h asubp oe naif i t p la ces an“un du e b ur de n” onth e p ers on subp oe na ed
. See Rul e 1 03 (a) (aut ho riz in g t he Co urt t o “ m ak e an y ord er wh ic h ju st ic e requi res to pro te cta pa rty or o th er p ers onfro m * * * u ndue bu rd enor e xp en se ”); Fed . R. Ci v. P. 4 5( d) (3 ) (au th or iz in g c ou rt t o qua sh a subp oe naif i t “ subjec ts a pe rs on to un du e b ur de n” ). 4 Befo re 1 99 1, Fe d. R. C iv . P. 45 (b ) (n ow ru le 45 (d )) p ro vi de d fo r a m ot io n 3 to qu as h o nl y

a subp oe nadu ces tec um th atwas tho ug htto be im pr ov id en tl y is su ed ; the re was no co m pa rab le pro vi si on co nc ern in g s ub po en as adtes ti fic an du m (co m pe ll in g a tt en da nc e o f a wit ne ss at atri al , hea rin g, o r de po si ti on ). See Ch arl es Alan Wrig ht& Arth urR. Mi ll er, Fed eral Prac ti ce an d P ro cedur e, se c. 24 55 , Subp oe naforth e Att en da nc e o f a Witn es s (3 d e d. 2 00 8) . Rul e 1 47 (b ) is m od el ed on th e p re-1 99 1 v ers io n o f Fed . R. Civ . P. 45 . See Ru le 14 7 n ot e, 60 T.C. 10 57 , 11 37 . Rul e 1 47 (b ) ap pl ie s o nl y to subp oe na s duc es tec um . See Gran db ou ch e, 99 T.C. at 6 15 , 62 0 (d ecl in in g t o a wardco st s wi thres pe ctto in it ia l s ub po en a duc es te cu m bu t awa rd in g c os ts for

co m pl ianc e wit h s ub se qu en t s ub po en a); Ste rnv. Co m m is si on er, 7 4 T.C. 1 07 5, 1 08 4 (1 98 0) (de cl in in g t o a wardco st s fo r co m pl ianc e wit h s ub po en a duc es tec um ); B an e v . Comm is si on er, T.C. Mem o. 19 71 -3 1, 3 0 T.C.M . (CCH) 1 25 , 12 8- 12 9 (g ran ti ng m ot io n t o qua sh subp oe na du ces tec um

th atso ug htirr el ev an t i nf orm at io n)
. The term “un du e b ur de n” was a dd edto th e te xtof F ed . R. Civ . P. 45 in 4 19 91 , rep la ci ng th e “un reas on ab le an d o pp res si ve ” te rm in ol og y us edinth e p re19 91 ve rs io n. Th is m od ifi cat io n was pu rel y semanti c an d was no t i nt en de d t o (co nt in ue d...)- 8 -

[* 8] The pa rty m ov in g t o qua sh a subp oe nabe ars th e b ur de n o f pe rs ua si on . Goo dm anv. Un it edSta te s, 3 69 F.2d16 6, 1 69 (9t h C ir. 1 96 6) ; M oo n v . SCP Po ol Co rp ., 23 2 F .R.D. 63 3, 6 36 (C.D. Cal . 20 05 ). Whe th er t o qua sh or m od ify a subp oe nali es withi n t he co urt’s d is cret io n. Se e, e.g ., Exx on Sh ip pi ng Co . v. U.S. Dep t. o f In te rio r, 34 F.3d77 4 (9 th Cir . 19 94 ); Gra ndbo uc he , 99 T.C. at 6 17 . In ex erci si ng th is di sc ret io n, the co urt m us t b al an ce the bu rd enup on th e subp oe na ed pa rty agai ns t the va lu e o f th e in fo rm at io n t o t he servi ng party. Facto rs to be co ns id eredin cl ud e th e rel ev an ce o f th e in fo rm at io n s ou gh t, the servi ng party’ s ne edfor th atin fo rm at io n, the bre ad th of t he reque st , th e ti m e p eri odco ve redby th e subp oe na , th e p art ic ul ari ty of th e reque st , andth e b ur de n i m po se d. Mo on , 23 2 F.R.D. at 6 36 ; Tel ev is a, S.A. de C .V. v. Uni vi si on Co m m c’ns , Inc ., No. CV 05 -3 44 4 P SGMANX, 20 08 W L 49 51 21 3, at*2 (C.D. Cal . Nov . 17 , 20 08 ). Thi s Co urt h as ap pl ie d e ss en ti al ly the same bal an ci ng tes t wh ende ci di ng whet he r to qu as h o r m od ify a subp oe naforpro du ct io n o f do cu m en ts un de r Ru le 14 7( b) . See (...co nt inue d) 4 ch an ge ex is ti ng law. See Adv is ory Co m m it te e Not e to th e 1 99 1 Am en dm en t t o Ru le 45 , 13 4 F .R.D. at 6 68 ; In re Cn ty. of Oran ge , 20 8 B .R. 11 7, 1 20 n.2 (S.D.N.Y. 19 97 ). Ru le 14 7( b) , go ve rn in g s ub po en as du ces tec um , ret ai ns th e p re19 91 term in ol og y

of t he Fed eral rul e an d p ro vi de s tha t the Co urt m ay qu as h o r m od ify a subp oe naif i t i s “ un reas on ab le an d o pp res si ve .” Becaus e “un du e bu rd en ” an d “ un reas on ab le an d o pp res si ve ” h av e es se nt ia ll y th e sa m e m ean in g, cas es in te rp ret in g R

ul e 1 47 (b ) m ay , inap pr op ria te cir cu m st an ces , be c on si de redin de ci di ng whet he r to qu as h asubp oe nasee ki ng on ly test im on y .- 9 -

[* 9] Durki n v . Comm is si on er, 8 7 T.C. 1 32 9, 1 40 1- 14 03 (19 86 ) (wei gh in g b ur de n on subp oe na edpa rty agai ns t l ik el y pro ba ti ve va lu e o f th e ev id en ce s ou gh t), a ff’d, 87 2 F .2d12 71 (7th C ir. 1 98 9) ; Huntv. Co m m is si on er, T.C. Mem o. 1 99 0- 24 8, 5 9 T.C.M. (CC H) 63 5, 6 51 -6 52 (em pl oyin g b al an ci ng tes t). Subp oe na s s eek in g the tes ti m on y of C EOs an d o th er h ig h- le ve l co rp or at e of fic ers m ay

warran t s pe ci al scrut in y . In s uc h c as es , cou rts ha ve requi redth e requ es ti ng pa rty to s ho w th atth e ex ecu ti ve po ss es se s u ni qu e kno wled ge of r el ev an t fact s an d t ha t the in fo rm at io n s ou gh t ca nn otbe ob ta in edby less bu rd en so m e m ean s. See , e.g., Th om as v. In t’l Bu s. M ach s., 4 8 F .3d47 8, 4 83 -4 84 (10 th Cir
. 19 95 ) (uph ol di ng pro te ct iv e o rd er b arri ng de po si ti on of t op ex ecu ti ve wher e lo wer le ve l em pl oyees wi thdi rectkn owl ed ge of t he fact s wer e av ai labl e fo r de po si ti on an d wh ere e xe cu ti ve lac ke d p ers on al kn owl ed ge ab ou t p la in ti ff’s cas e); Sal te r v. Upjo hn Co ., 59 3 F .2d64 9, 6 51 (5t h C ir. 1 97 9) (affi rm in g Di st ric t Co urt’s h ol di ng th atde fen da nt ’s pre si de ntne edno t b e d ep os edun ti l p la in ti ff h adde po se d l owe r le ve l em pl oyees, wh ere p res id en t was no t s ho wn t o h av e uni qu e kno wled ge of t he fact s) ; Ba in e v . Gen. M ot or s C or p., 1 41 F.R.D. 33 2, 3 34 -3 35 (M.D. Ala. 1 99 1) (s ta ti ng th atfora to p e xe cu ti ve to be de po se d, the pro sp ect iv e d ep on en t m us t h av e un ique pe rs on al kn owl ed ge of r el ev an t fa ct s)
.- 10 -

[* 10 ] W ith t hi s fr am ewo rk inm in d, we co ns id er h ow the ba lanc in g t es t ap pl ie s t o th e fac ts he re. The pa rti es ag ree t ha t the ev id en ce s ou gh t fr om Mr. Bez os wou ld be rel ev an t. In de ed , th e fac t tha t the 15 subjec ts on whi chres po nd en t p ro po se s t o ex am in e Mr. Be zo s h av e b eenco ve redat l en gt h b y nu m ero us witne ss es co nf irms th e rel ev an ce o f th es e to pi cs . This fact orweig hs infav or of d en y in g the m ot io n t o qu as h. On the ot he r ha nd , we fin d t ha t re sp on de nt ’s nee d fo r th e reque st edin fo rm at io n i s s li gh t b ecau se Mr. Bez os ’ te st im on y wou ldalm os t ce rta in ly be cu mula ti ve . Whe th er the in fo rm at io n s ou gh t i s cu m ul at iv e o r dupl ic at iv e g oe s d ire ct ly to th e reque st in g p arty ’s nee d fo r th atev id en ce. See Bro wn v . Cit y of S y racu se , 64 8 F . Sup p. 2 d 4 61 , 46 6 (N.D.N.Y. 20 09 ); F ed . R. Evi d. 4 03 (pe rm it ti ng co urt t o ex cl ud e “ cu m

ul at iv e ev id en ce”)
. Here, 2 1 Am azo n fa ctwitne ss es ha ve alr eady tes ti fie d a ndsi x o f th os e wit
ne ss es ha ve be enS-Team m em be rs who rep orte d d ire ct ly to M r. Bezo s. Th es e witne ss es are i nt im at el y

fam il iar with M r. Bezo s’ m an ag em en t s tyle an d c or po rat e ph il os op hy, andth ey

ha ve co ve red , inde pt h, al l 1 5 s ub jects ab ou t wh ic h re sp on de ntpro po se s t o que st io n h im . Res po nd en t h as no t i de nt ifi edan y rel ev an t t op ic no t co ve redby prio r te st im on y or a ny sub

ject abo utwhi chMr. Bez os is all eg edto- 11 -

[* 11 ] po ss es s u ni qu e kno wled ge . Res po nd en t d idno t s eekto de po se Mr. Bez os 5
an d i nd ic at edth atMr. Bez os m ig htno t b e cal le d e ve n i f th e m ot io n t o qua sh were de ni ed . Col le ct iv el y , th es e fac ts de m on st rat e th atres po nd en t’s n eedforMr. Bez os ’ te st im on y

is m in im al an d wei gh he av il y infav orof g ran ti ng th e m ot io n t o qu as h. The bre ad th an d g en eral ity of t he in fo rm at io n s ou gh t l ik ewis e cu t i n fa vo r of qu as hi ng th e subp oe na . Res po nd en t s eek s t o que st io n M r. Bezo s o n awid e ran ge of t op ic s co ve rin g alo ng ti m e sp an , fro m 19 97 to th e p res en t. Res po nd en t ha s al read y

eli ci te d t es ti m on y

fro m witne ss es who de al t wi th th e rel ev an t t op ic s o n a d ay -to -d ay

ba si s an d wh o t es ti fie d abo utth em with agra nu lar le ve l o f de ta il
. Hig h- le ve l t es ti m on y

fro m Mr. Bez os on th es e to pi cs wou ldad d l it tl e. Prep ari ng hi m to tes ti fy inan y de ta il on su cha br oa d ra ng e o f to pi cs wou ldbe ex cep ti on al ly ti m e co ns um in g. Fo r si mil ar re as on s, we co nc lu de th atth e b ur de n i m po se d o n M r. Bezo s wou ldbe gre at . Prep ari ng foran d d el iv eri ng tri al tes ti m on y is alway s a b ur de n. Am in i In no va ti on Co rp . v. Mc Ferr anHom e Fu rn is hi ng s, In c., 30 0 F .R.D. 40 6, 4 12
Res po nd en t i nd ic at eda de si re t o c on firm th e au th en ti ci ty of cert ai n p ub li c 5 st at em en ts th atMr. Bez os ha s m ad e, in cl ud in g s ta te m en ts inlet te rs to sh areh ol de rs co nt ai ne d i n Am azo n’s an nu al rep orts . Peti ti on er s ub se qu en tl y ag reedto st ip ul at e th e au th en ti ci ty of al l p ub li c st at em en ts by Mr. Bezo s.- 12 -

[* 12 ] (C.D. Cal . May 19 , 20 14 ) (d ep os it io n) . Thatwou ldbe esp eci al ly true he re gi ve n t he bro adran ge of t op ic s o n wh ic h re sp on de ntpro po se s t o que st io n M r. Bez os . Res po nd en t p red ic ts th athi s t es ti m on y “ is li ke ly to b e le ss th ana da y ,” bu t th is is no t a f

or ecas t fr om

whi chMr. Bez os wou ldde riv e m uc h c om fo rt. No ot he r factwitne ss ha s t es ti fie d fo r m or e th anth ree h ou rs . Mr. Be zo s i s the CEO of o ne of t he lar ge stco m pa ni es inth e Uni te d S ta te s. The po ss ib il ity

th athe co ul d b e requi redto tes ti fy fora fu ll da y

on subjec ts th at ha ve be enco m

pr eh en si ve ly cov eredby oth er wi tn es se s co nf irms th e b ur de ns om e na tu re o f res po nd en t’s re qu es t. Pet it io ne r ha s n otin vo ke d t he sp eci al rul e fo r hi gh -le ve l o ffi cers as a n abs ol ut e sh ie ld : s ix sen io r ex ecu ti ve s fr om Am azo n h av e al read y tes ti fie d, an d t wo m or e are ex pe ct edto tes ti fy be fo re the tri al is co nc lu de d. The in vo cat io n o f th is sp eci al rul e wit h re sp ectto Mr. Bez os inpa rti cu lar is am pl y jus ti fie d u nd er the cir cu m st an ces . Insu m , aft er b al an ci ng res po nd en t’s n eedforth e reque st edtes ti m on y ag ai ns t the bu rd enon Mr. Bez os , we con cl ud e th atth e b ur de n i m po se d o n h im wou ldbe “un du e.” We will th eref or e g ran t p et it io ne r’s m ot io n t o qua sh subp oe na .

An ap pr op ria te ord er wi ll be is su ed
.