British firms suing Amazon for damages of up to £1.1 billion after ‘squeezing them out of market’
A GROUP of UK retailers is suing Amazon for up to £1.1billion over claims it misused their data to squeeze them out of the market.
The British Independent Retailers Association said it was the biggest such collective action launched in this country.
Bira alleges Amazon’s UK marketplace illegally used data belonging to competing sellers to market rival products for a cheaper price.
The information Amazon took helped it to decide which products it should sell, at what price, and which consumers to target, according to the claim.
Shoppers can buy products sold directly from Amazon, or through independent sellers who list their products on the marketplace.
Bira also alleges in its claim that Amazon manipulated buying options to favour its own products and conceal those belonging to rival sellers.
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Amazon has long challenged that claim and the accusations that it misuses the information it collects from retailers.
Bira, represented by law firm Willkie Farr & Gallagher, said the potential £1.1billion damages figure was calculated using analysis of data showing online sales made on Amazon’s UK marketplace.
The claim was filed at a specialist London tribunal yesterday.
Andrew Goodacre, Bira’s chief executive, called it a “watershed moment”.
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He added: “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.”
Amazon was asked to comment.