Sunday, May 28, 2023

Amazon to be sued for $1 billion in the UK for “favoring its own products”

Amazon It is facing a lawsuit in Britain for damages of up to 900 million pounds (about $1 billion), lawyers said, alleging the online marketplace abused its dominant position by endorsing its own products. Have done

Consumer rights campaigner Julie Hunter plans to bring a class action on behalf of British consumers who have been shopping on Amazon since October 2016, lawyers representing her have said.

The proposed case – which Amazon has said is “without merit” – would be the latest class action action against a tech giant to appear before London’s Competition Appeal Tribunal (CAT).

The Hausfeld law firm, which represents Hunter, said Thursday that Amazon violated competition law by using “a secret, self-advancing algorithm” to promote its own products through the feature. Is. “Buy Box” from your website.

Hunter said in a statement: “Far from being a recommendation based on price or quality, Buy Box endorses products sold by Amazon, or by retailers who pay Amazon to handle their logistics. Other vendors, no matter how good their offers are, are excluded”.

An Amazon spokesperson said in a statement: “This claim is baseless and we are confident that it will be cleared up through the legal process.”

The lawsuit is expected to be filed with CAT later this month and will need to be certified by the court before it can proceed.

It is being filed on an “opt-out” basis, meaning any potential plaintiffs will be included in the lawsuit unless they opt out.

The case comes after Britain’s antitrust watchdog announced in July that it was investigating Amazon for alleged breaches of competition law, including that it was offering a selection of products housed in a “buy box” facility.

World Nation News Desk
World Nation News Desk
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