E-commerce giant Amazon is facing a class action lawsuit in the UK for the alleged misuse of retailer data and manipulation of its Buy Box feature to benefit its commercial operation.
The £1bn damages claim, the largest collective action ever launched by UK retailers, has been initiated by the British Independent Retailers Association (BIRA) at the Competition Appeal Tribunal (CAT) in London.
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The lawsuit accuses Amazon of illegally using data from UK retailers and manipulating its Buy Box to prioritise its own products since October 2015. This has reportedly boosted its revenues and profits at the expense of the retailers.
The e-commerce retailer can allegedly use this data to decide if it should introduce a new product segment depending on its earnings and sales potential, how to set the price and the target consumers.
The lawsuit claims that the retailers, many of whom are small businesses, were unaware that Amazon was exploiting their data to its benefit, despite paying a non-negotiable 30% commission on every product sold on the platform.
BIRA is represented by international legal solutions provider Willkie Farr & Gallagher (UK).
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By GlobalDataIts legal team, led by Willkie Farr partners Boris Bronfentrinker, Elaine Whiteford and Michelle Clark, will submit more than 1,150 pages of documentation outlining their case against Amazon.
The team is supported by barristers Sarah Ford KC and Jason Pobjoy.
In 2022, the UK Competition and Markets Authority (CMA) launched an investigation into Amazon for allegedly abusing its dominant position and unfairly benefiting its own retail business. Amazon’s access to sensitive third-party retailer data was a key concern for the CMA, as it could influence product and pricing decisions.
BIRA CEO Andrew Goodacre said: “The British public has a strong relationship with its local, independent retailers and ensuring they are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action.
“The filing of the claim today is the first step towards retailers obtaining compensation for what Amazon has done. I am confident that the CAT will authorise the claim to go forward, and I look forward to the opportunity to present the case on behalf of UK retailers. This is a watershed moment for UK retailers, but especially for small independent retailers in this country.”
In May 2023 a Reuters report revealed that a US Federal Trade Commission lawsuit against Amazon regarding its Prime membership programme will continue after a Seattle judge rejected Amazon’s attempt to dismiss the case.
