Amazon Faces £1 Billion Suit Over Alleged Data Misuse in UK

Amazon is confronting a £1 billion (MX$23.9 billion) class action lawsuit in the United Kingdom, accused of misusing retailer data and manipulating its Buy Box feature to benefit its commercial operations. The British Independent Retailers Association (BIRA) has initiated the claim, marking the largest collective action ever launched by UK retailers.

The lawsuit, filed at the Competition Appeal Tribunal (CAT) in London, alleges that since October 2015, Amazon has illegally used data from UK retailers to boost its revenues and profits at their expense. The claim asserts that Amazon exploited non-public data to decide whether to enter new product segments, set prices, and target consumers, all while charging a non-negotiable 30% commission on sales made through its platform. The legal team has submitted over 1,150 pages of documentation outlining their case against Amazon.

Amazon has also faced legal action in the United States due to its Buy Box feature and price steering, as previously reported by MBN. This lawsuit focuses on Amazon's alleged practice of favoring higher-priced items from third-party sellers participating in its Fulfillment By Amazon program. The algorithm allegedly prompts nearly 98% of shoppers to select Amazon's choices, leading consumers to believe they are getting the best prices.

In 2022, the UK Competition and Markets Authority (CMA) launched an investigation into Amazon for allegedly abusing its dominant position and unfairly benefiting its retail business. The CMA's concerns centered on Amazon's access to sensitive third-party retailer data, which could influence its product and pricing decisions.

Amazon, which is also facing a legal challenge from GMB over alleged anti-union activities, has consistently denied claims of misusing third-party data. An Amazon spokesperson stated, “We have not seen this complaint, but based on the reporting so far, we are confident that it is baseless and that this will be exposed in the legal process. Over 100,000 small and medium-sized businesses in the UK sell on Amazon’s store, and more than half of all physical product sales on our UK store are from independent selling partners, and the fact is that we only succeed when the businesses we work with succeed.”

In May 2023, Reuters revealed that a US Federal Trade Commission lawsuit against Amazon regarding its Prime membership program would continue after a Seattle judge rejected Amazon’s attempt to dismiss the case.