The threat model for AMZ is state sponsored corporate espionage, not government intruding on your and my privacy. The former cost them a ton of money unlike the later. Given their inability to enforce IP or many other laws in china even if there was similar espionage happening in the U.S. the legal system is strong enough for Amazon not to worry of losing money.
But if Amazon found evidence of code that allows for TikTok to engage in corporate espionage, why would they keep it a secret and just send out an email (and later retract) that forbids employees from using the app?
It seems way more likely that a non-tech manager at Amazon read the news and wrote the email.