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BUSINESS

Amazon Faces $1 Bn Lawsuit in Britain for Favouring Its Own Products

Amazon had breached competition law by adopting a secretive algorithm to promote its own products.

Amazon.com Inc (NASDAQ:AMZN) is facing a lawsuit in Britain for damages of up to USD 1 billion (900 million pounds ) over allegedly abusing its dominant position by favouring the company’s own products. The said case would be the latest mass action against a technology giant to be filed at Competition Appeal Tribunal (CAT).

On Thursday, law firm Hausfeld said that Amazon had breached competition law by adopting a secretive algorithm to promote its own products through the ‘Buy Box’ feature on its website. Reportedly, the Buy Box favours products sold by Amazon or by retailers who pay Amazon for handling their logistics. Other sellers are effectively shut out.

An Amazon spokesperson said that this claim is without merit, and the company is confident that things will become clear through the legal process. The lawsuit is expected to be filed at the CAT by the end of this month and will have to be certified by the tribunal before it can proceed.

The case follows the announcement by the UK’s antitrust watchdog in July that it is investigating Amazon over suspected breaches of competition law, including how it selects which products are placed within the Buy Box feature.

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