Amazon.com (AMZN) on Watch; FAA Gets Negative on Commercial Drone Flights

Amazon.com (Nasdaq: AMZN) might have a tough time getting its proposed delivery drones on the favorable side of the FAA.

According to a document (embedded below), the Federal Aviation Administration said it doesn't want unmanned aircraft delivering packaged for a fee. The FAA went on that, even without a fee, delivering packages counts as commercial activity and that is against the rules.

Is this a devastating blow for Amazon and other companies that might like to get into the drone delivery game? Probably not. One federal court ruled this year that the FAA doesn't have a say over small aircraft.

That said, no rules are in place for commercial drones and the FAA is appealing the prior decision.

Hobbyists shouldn't be dismayed as the squabble only applies to commercialization of the unmanned aircraft.

Shares of Amazon are down 1.3 percent Tuesday.

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