Amazon is set to face a £1 billion damages claim from retailers selling on its UK marketplace, marking the largest ever collective action initiated by UK retailers.
The claim, which will be filed today, alleges that the e-commerce giant unlawfully misused retailers' data and manipulated the 'Amazon Buy Box' to enhance its commercial operations and increase overall revenues and profits.
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According to the British Independent Retailers Association (BIRA), Amazon exploited non-public data belonging solely to UK retailers on its marketplace from October 2015 to the present. This data allegedly helped Amazon decide whether to enter new product segments based on sales potential, which product elements to replicate, how to price products, and which customers to target.
BIRA asserts that the affected businesses were unaware that Amazon was illicitly using their data for its own benefit.
Amazon has consistently denied claims that it misuses data from third-party companies to support its own retail operations. The company also disputes allegations that it manipulates the Buy Box to favour its own products.
Source: www.retailgazette.co.uk