Bira, representing independent UK retailers, files a £1bn claim against Amazon.
- The claim alleges Amazon misused retailer data for its own product strategies.
- This action represents the largest collective claim under the Competition Act.
- Confidential retailer data was allegedly used to divert sales to Amazon.
- Bira’s CEO emphasises the need for retailers to secure compensation.
Bira has initiated a landmark £1bn legal claim against Amazon on behalf of approximately 35,000 independent UK retailers. The claim, lodged on 7 June, accuses the ecommerce giant of misusing confidential retailer data to infiltrate product markets and divert revenue from the retailers’ sales to its own operations. This allegation marks a significant chapter in the ongoing scrutiny of Amazon’s competitive practices within the UK.
The core of the claim rests on accusations that Amazon utilised data entrusted to it by the retailers for its own competitive advantage. Since October 2015, Amazon allegedly leveraged this data to strategically enter product markets, undermining the retailers and leading to substantial financial losses. According to Bira, the damages incurred, including interest, could total approximately £1.1bn.
Andrew Goodacre, CEO of Bira, highlighted that while independent retailers have long been aware of the high commission fees—up to 30%—imposed by Amazon, the covert use of their trading data represents a deeper threat. Goodacre expressed confidence in the legal process, anticipating that the Competition Appeal Tribunal (CAT) will permit this collective claim to advance.
Boris Bronfentrinker, partner at Willkie Farr & Gallagher, supports Bira’s contention that Amazon’s practices have unfairly compromised retailers. He asserts that Amazon’s dominance and data practices have left individual retailers vulnerable, unable to challenge the tech giant independently. Bronfentrinker commends Bira’s initiative in leading this substantial legal action on behalf of UK retailers.
The outcome of Bira’s legal claim against Amazon may set a precedent for how ecommerce data practices are regulated and adjudicated in the UK.
