There is insufficient evidence to verify that Amazon used to launch a competitor product against the start-up company after investing in it.
Amazon would acquire the start-up company by providing the settlement. Several examples were included in the news articles, like Alexa, which was acquired from Nucleus, and Amazon Web services acquired companies that used to provide services for third party businesses.
According to Business Insider, Amazon spokesperson had stated that disputes on the ownership of property were resolved in the court through the legal procedure.
However, Amazon does not disclose its specific investments and acquisitions to the general public, and it cannot be verified.