A group of UK retailers is suing Amazon for allegedly misusing their data to inflate its profits and push them out of the market.
The retailers represented by the British Independent Retailers Association (Bira) seek up to £1.1 billion in damages.
This lawsuit marks the largest collective action ever launched by UK retailers.
The claim was filed on Thursday, June 6, at a specialist London tribunal.
Bira accuses Amazon’s UK marketplace of illegally using data from competing sellers between 2015 and 2023 to market rival products at cheaper prices.
This practice allegedly helped Amazon determine which products to sell, at what prices, and which consumers to target, thus benefiting its retail operations.
According to the claim, more than 80 percent of Amazon’s UK purchases are made through the “buy box,” where shoppers use the “buy now” or “add to basket” buttons.
Bira alleges that Amazon manipulated this system to favor its products and obscure those of rival sellers.
Amazon has long denied accusations of misusing third-party retailer information and manipulating the buy box.
The company has also agreed to several commitments following an investigation by the UK competition watchdog in 2022.
“The British public has a strong relationship with its local, independent retailers and ensuring they are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action”
Bira, represented by law firm Willkie Farr & Gallagher, estimates that Amazon could be liable for up to £1.1 billion in damages if the case is successful.
This figure is based on an economic analysis of online sales data from Amazon’s UK marketplace.
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If the tribunal agrees to proceed with the class action, a trial might not occur until mid-2026 unless Amazon offers a settlement to the involved retailers beforehand.
Bire CEO Andrew Goodacre said Amazon has become the “dominant marketplace in the UK” for people shopping online.
“As a result, for small retailers with limited resources, Amazon is the marketplace to start online trading.
“The British public has a strong relationship with its local, independent retailers and ensuring they are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action.
“This is a watershed moment for UK retailers, but especially for small independent retailers in this country.”