Amazon will face an antitrust class action lawsuit of 900 million pounds

Amazon.com, Inc 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.

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.