⚖️ Background of the Lawsuit
On June 7, 2024, the British Independent Retailers Association (BIRA) filed a lawsuit against Amazon in the Competition Appeal Tribunal in London. The lawsuit represents around 35,000 small retailers and seeks $1.3B in damages. BIRA alleges that Amazon misused data from its marketplace traders to benefit its own sales. This case is the largest class action in the UK's history, enabled by a 2015 competition law change that allows collective claims.
📊 Amazon's Alleged Misconduct
The core issue is Amazon's dual role as a marketplace operator and a retailer. The Competition and Markets Authority (CMA) began investigating Amazon in 2022, accusing it of using seller data to set its own product prices and deciding which products to sell. The EU Commission had similar allegations in 2019, leading Amazon to make concessions and promise better data protection, avoiding potential fines of up to 10% of its annual turnover.
📑 Evidence and Representation
BIRA has presented 1,150 pages of documents to substantiate their claims, supported by economist Rainer Nitsche from E.CA Economics. They are represented by the law firm Willkie Farr & Gallagher. Boris Bronfentrinker, a partner at the firm, highlighted the significance of this collective action system for enabling small and medium-sized companies to defend their interests against large multinationals.
📢 Statements and Reactions
Andrew Goodacre, BIRA's CEO, emphasized the lack of alternatives for small sellers who rely on Amazon's marketplace for reach. He criticized Amazon's data misuse, calling the lawsuit a "turning point" for these sellers. Although Amazon has denied the allegations, it has made concessions in the past to both the EU and UK competition authorities. As of now, Amazon has not commented on the current lawsuit.
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