Bira has filed a £1 billion damages claim against Amazon at the Competition Appeal Tribunal (CAT) in London. The claim alleges that Amazon engaged in unlawful conduct by:

1. Misusing Merchant Data: Amazon allegedly used non-public data from third-party merchants to make strategic decisions for its retail operation, known as Amazon Retail. This included pricing strategies, inventory planning, and product selection decisions.

2. Manipulating the ‘Buy Box’: Amazon is accused of self-preferencing its own products in the ‘Buy Box,’ a feature that prominently displays a single ‘Featured Offer’, disadvantaging third-party merchants and diverting sales to Amazon’s own products.

These practices reportedly led to reduced sales and profits for third-party merchants, many of whom are small, independent UK retailers.

Retailers are automatically included in the proposed class if they meet the following criteria:

• Sold at least one new product on Amazon’s UK online marketplace between 1 October 2015 and 6 June 2024.
• Are domiciled in the UK (for businesses, this means being incorporated, having a registered office, or central management in the UK; for individuals, this means being a UK resident with a substantial connection to the UK).

Retailers based outside the UK but selling on Amazon’s UK marketplace may also join the class by opting in.

Bira has partnered with leading international law firm Willkie Farr & Gallagher (UK) LLP and renowned competition barristers Sarah Ford KC and Jason Pobjoy to bring this claim. The case is backed by Litigation Capital Management (LCM), one of the world’s largest litigation funders.

Bira's CEO, Andrew Goodacre, stated: “Ensuring that independent retailers are not put out of business by Amazon’s illegal actions is a key driving force behind this collective action. This claim seeks to compensate retailers for the harm caused by Amazon’s practices and protect the future of independent businesses.”

The collective action will proceed on an opt-out basis for UK-domiciled retailers, meaning no action is required to participate. Non-UK merchants can opt in to join the claim.

The claim follows investigations by the UK Competition and Markets Authority (CMA) and the European Commission, which raised concerns about Amazon’s misuse of merchant data and self-preferencing practices. These probes led Amazon to commit to changes, including appointing an independent trustee to monitor its compliance. However, Bira’s claim argues that significant financial damage has already been done to UK retailers.

Amazon’s annual gross profit for 2023 was $270.046 billion (£211.46 billion), highlighting the scale of its dominance in the online marketplace. Expert analysis estimates the total damage caused to UK retailers at approximately £1.1 billion, including interest.

This is the largest collective action ever brought under the Competition Act 1998 on behalf of UK retailers. The Act’s 2015 amendments enabled collective damages claims for groups of individuals or businesses affected by anti-competitive conduct.

Bira’s claim represents a significant step towards holding Amazon accountable and ensuring fair treatment for retailers. By seeking redress for past losses, the action aims to restore balance in the UK’s retail sector and support the survival of small, independent businesses.

• Automatic Inclusion: If you meet the class criteria and are UK-domiciled, you will automatically be part of the claim unless you choose to opt out.
• Opting In: If you are not domiciled in the UK but sold on Amazon’s UK marketplace, you can opt in to join the class.
• Stay Informed: Bira will communicate updates through a dedicated claim website, as well as newspapers, magazines, and social media.