£1 billion Damages Claim Filed Against Amazon by UK Retailers

Yesterday, 6th June 2024, significant legal action was taken against Amazon by the British Independent Retailers Association (BIRA) on behalf of UK retailers. The claim, which is the largest collective action ever launched by UK retailers, alleges that Amazon has been misusing data from retailers on its UK marketplace and manipulating the Amazon Buy Box to benefit its own commercial operations. This misuse of data and manipulation is said to have diverted sales revenue and profits from these retailers to Amazon, causing significant financial harm, especially to small independent businesses.

The claim, filed at the Competition Appeal Tribunal (CAT) in London, asserts that Amazon’s actions have inflated its profits while pushing many UK independent retailers out of the market. The total damage caused to UK retailers is estimated to be around £1.1 billion, including interest. This collective action aims to allow UK retailers to access justice as a group and receive compensation for their losses.

Amazon has previously challenged similar allegations, but investigations by the UK Competition and Markets Authority (CMA) and the European Commission have raised concerns about Amazon’s practices. In response, Amazon has offered commitments to halt these practices and agreed to appoint an independent trustee to monitor compliance.

The legal team representing BIRA includes leading international law firm Willkie Farr & Gallagher (UK) LLP and top competition barristers. The claim is being funded by Litigation Capital Management (LCM), ensuring that the retailers have the financial backing to pursue this case to its conclusion.

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