Amazon Faces £1 Billion Lawsuit from British Retailers

153

British retailers, represented by the British Independent Retailers Association (BIRA), are taking legal action against Amazon, alleging that the online giant misused their data to gain an unfair advantage in the marketplace. The lawsuit, amounting to one billion pounds ($1.3 billion), is set to be filed at the Competition Appeal Tribunal (CAT) in London, with around 35,000 retailers participating.

The retailers assert that Amazon utilized non-public data provided by sellers on its Marketplace to undercut prices and promote its own competing products directly to consumers. BIRA’s Chief Executive, Andrew Goodacre, emphasized that smaller retailers often rely on Amazon due to its extensive reach but expressed concern over Amazon’s practices potentially harming their businesses. The lawsuit aims to seek compensation for the alleged wrongdoing.

Amazon has not yet responded to the allegations. However, BIRA’s case also accuses Amazon of manipulating the “Buy Box” feature on its platform to favor its products, further exacerbating the perceived imbalance in competition. The “Buy Box” feature, prominently displayed on product pages, plays a crucial role in driving sales.

This legal action comes amidst ongoing scrutiny of Amazon’s practices by regulatory authorities. The Competition and Markets Authority (CMA) in Britain initiated an investigation into Amazon’s operations, particularly focusing on its management of the “Buy Box” and product selection processes. While Amazon has previously committed to measures to ensure fair competition on its platform, these legal challenges underscore the persistent concerns regarding its market dominance and treatment of third-party sellers.