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Amazon faces £900m lawsuit in UK over use of ‘secretive and self-favouring algorithm’ | Business News



Amazon is facing a $1bn (£889m) lawsuit in the UK alleging it abused its dominant position by favoring its own products.

The case is being conducted by consumer rights advocate Julie Hunter and her lawyers say the case focuses on “a secret and self-beneficial algorithm” used by the tech giant. used to advertise their own products through the “buy box” feature on their website.

Items selected for Amazon’s “buy box” are more visible to shoppers and thus give a head start in achieving sales, the lawsuit says.

The proposed class action will be brought on behalf of UK consumers who have purchased items on Amazon since October 2016.

It’s on an “opt-out” basis, which means any potential claimants will be included in the claim unless they choose to opt-out.

The lawsuit alleges the online marketplace venue violated competition laws, abused its dominance in e-commerce and obscured the better deals of top customers to these outstanding offers. .

Ms Hunter said in a statement: “More than a recommendation based on price or quality, the buy box favors products sold by Amazon itself or by retailers who pay Amazon to handle the logistics. their.

“Other sellers, no matter how good their offer, were effectively closed.”

The case is expected to be filed at London’s Court of Competition Appeals at the end of October and will need to be certified there before proceeding.

An Amazon spokesperson said in a statement: “This claim is baseless and we believe that will become clear through the legal process.

“We’re always working hard to come up with deals that offer our customers low prices and quick delivery.”

Read more:
Amazon is under investigation in the UK for practices that could have given customers a ‘worse deal’
Amazon files lawsuit against 10,000 Facebook groups designed to create fake reviews

Amazon has faced a number of other competing investigations in recent months, including in the UK, Europe and Australia.

In July, the UK Markets and Competition Authority, said it would investigate Amazon for suspected anti-competitive practices, including how it selects listings for its Buy Box.

That same month, Amazon promised to treat all sellers equally when it comes to rating box offers – it was one of a number of concessions made with the EU.

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