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New Amazon Bias Charge Likely to Delay Pentagon's Cloud Contract

  • Pentagon ex-employee is focus of new conflict allegations
  • Judge agreed to pause court proceedings to allow new review
Europe's Stocks Drop With Tech Shares Stealing Some Attention
Photographer: Jason Alden/Bloomberg

A new Pentagon investigation into whether a former employee’s connections to Amazon.com Inc. corrupted a $10 billion cloud contract is likely to delay the agency’s decision to choose a winner for the massive deal.

The Defense Department review of alleged conflicts of interests, part of an ongoing court battle, has prompted the government to backtrack on parts of the extensive procurement process, after having spent 18 months on it. The Pentagon previously had said it was planning to announce a winner by April.