UK retailers are filing a £1 billion ($1.3 billion) lawsuit against Amazon, alleging that the company improperly used their data. The retailers claim that the data was used to boost Amazon's own market share and profits by undercutting them with cheaper, rival products.
According to Reuters, the British Independent Retailers Association (BIRA), representing around 35,000 small traders, filed the lawsuit at the Competition Appeal Tribunal (CAT) in London on Thursday, June 6.
UK Retailers' Lawsuit for Amazon
The lawsuit claims Amazon exploited non-public data from retailers selling on its Marketplace to undercut them by offering cheaper, rival products directly to consumers.
BIRA's Chief Executive, Andrew Goodacre, pointed out the difficult situation small retailers are in: they feel compelled to use Amazon because it has such a large customer base and market presence.
However, he stresses that the purpose of the lawsuit is to stop Amazon from using its dominant position to unfairly push these small retailers out of business.
By filing this lawsuit, BIRA hopes to secure compensation for the small retailers who have been negatively impacted by Amazon's alleged misuse of their data and unfair business practices.
The lawsuit further claims that Amazon manipulated the "Buy Box" feature on its website, which highlights specific products at the top of product pages, for its own benefit. This alleged manipulation of the "Buy Box" is also the focus of a separate lawsuit filed on behalf of consumers, seeking up to £900 million ($1.1 billion) in damages.
In 2022, Britain's Competition and Markets Authority (CMA) began investigating Amazon's practices, including the selection process for the "Buy Box". Just last year, the CMA accepted commitments from Amazon aimed at ensuring fair competition on its platform.
Amazon has not responded to requests for comment.
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