Amazon Faces £900M UK Antitrust Class Action For Algorithm Abuse

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  • Amazon.com, Inc AMZN faced a U.K. class-action lawsuit for allegedly using a “secretive and self-favoring algorithm” algorithm to abuse its dominant position in the online marketplace.
  • Amazon used the algorithm to ensure that the Buy Box nearly always features goods sold directly by Amazon itself or by third-party retailers who pay hefty storage and delivery fees to Amazon, Hausfeld alleged.
  • Amazon has breached competition law and caused millions of U.K. customers to pay higher prices for products sold on Amazon.co.uk and the Amazon mobile app by covering better-value deals.
  • Also Read: France Slashes Apple’s Antitrust Penalty By 66%: Report
  • Julie Hunter, a longstanding consumer rights advocate, is seeking to represent the interests of tens of millions of Amazon users in the collective action, likely to be filed before the end of October.
  • The claim will seek damages from Amazon estimated in the region of £900 million.
  • The European Commission pursued two formal antitrust investigations into Amazon
  • An investigation by Italy’s competition regulator concluded in December 2021 that Amazon had abused its dominant position by making certain benefits to third-party retailers conditional on their purchasing of its logistics service.
  • Amazon held $60.7 billion in cash and equivalents as of June 30.
  • Price Action: AMZN shares traded higher by 0.46% at $115.60 in the premarket on the last check Thursday.
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Posted In: NewsLegalTechBriefs

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