“UK Retailers Sue Amazon for £1.1 Billion, Alleging Data Misuse and Anti-Competitive Practices”

UK retailers are taking legal action against Amazon, claiming damages of up to £1.1 billion for the illegal misuse of their data and manipulation of business practices. The British Independent Retailers Association (Bira) has filed a collective case against the e-commerce giant, which will be heard by the Competition Appeal Tribunal in London. This is the largest claim of its kind, with approximately 35,000 UK retailers involved.

According to Bira, Amazon has engaged in anti-competitive behavior since October 2015 by using private data belonging to independent UK retailers on its marketplace. The misuse of this data, combined with manipulation of the Amazon “buy box,” has allowed Amazon to divert sales revenue and profits from these retailers to itself. Bira alleges that Amazon misused confidential information from third-party sellers, such as earnings and sales potential, to determine which products to enter, how to price them, and which consumers to target.

Smaller retailers, many of whom were unaware that Amazon was using their data, have been unfairly disadvantaged by these tactics. These retailers already pay Amazon a 30% commission on all sales. Andrew Goodacre, CEO of Bira, points out that despite the damaging effects on their business, independent retailers have little choice but to use Amazon due to its dominance in the UK marketplace.

Bira’s legal action aims to protect independent retailers from being pushed out of the market and ensure that Amazon’s illegal actions do not put them out of business. It is a significant moment for UK retailers, particularly small independent businesses.

Amazon has consistently denied allegations of misusing data and claims that it uses the “buy box” to preference its own retail operations. The company has made commitments following a probe by the Competition and Markets Authority in 2022. An Amazon spokesperson expressed confidence that the lawsuit is baseless and will be proven so in the legal process. They emphasized the number of small and medium-sized businesses that sell on Amazon’s platform and stated that Amazon’s success depends on the success of its partners.

Bira has enlisted the help of international law firm Willkie Farr & Gallagher LLP to represent them in the case. The claim is to be filed under the Competition Act 1998, which allows for collective damage claims on behalf of a class of people who have suffered loss. Boris Bronfentrinker, an antitrust and competition solicitor at Willkie Farr & Gallagher, believes this is precisely the type of claim that the collective action regime was designed for. He highlights Amazon’s unrivaled power in the online world and its misuse of retailers’ confidential data.

If the Competition Appeal Tribunal agrees to proceed with the class action, the trial will take place in mid-2026 unless Amazon chooses to settle out of court. Under the rules outlined in the Competition Act 1998, all UK retailers that have suffered a loss and are domiciled in the UK will automatically become part of the claimant class. Retailers not currently domiciled in the UK but who sold on the UK Amazon marketplace will have the option to opt in and benefit from the proposed claim.