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Amazon facing £900 Million Antitrust Lawsuit

Amazon facing £900 Million Antitrust Lawsuit

A £900 million antitrust lawsuit against Amazon is expected to be filed in the UK later this month. The online retail giant is facing the threat of an antitrust lawsuit. Amazon is accused of violating UK competition law by raising prices for products sold on its website to millions of UK customers, according to the lawsuit. In addition, it is alleged that Amazon is abusing its position as the dominant online marketplace by knowingly harming customers for profit.

The suit focuses on Amazon's "Buy Box" feature, a feature on the company's website that uses an algorithm to direct customers to the alleged "best deal" for the product they're looking for.  Julie Hunter, a long-time British consumer rights advocate who will represent a class of millions of UK Amazon users, is the plaintiff in the case. Amazon manipulates consumer choice and directs customers toward the featured offer in its Buy Box, despite the fact that many customers believe that the company offers a good selection and value. The Buy Box gives preference to products that are sold by Amazon itself or by retailers who pay Amazon to handle their logistics, rather than making a recommendation based on price or quality. Even if the offers offered by other sellers are excellent, they are effectively excluded from Amazon's marketplace because they are either relegated to the bottom of the page or tucked away in a remote area of the site. By the end of October, the suit is expected to be filed with the UK Competition Appeal Tribunal.