The British Independent Retailers Association (BIRA) has initiated a major legal action against Amazon, filing for £1bn in damages.
- The lawsuit claims that Amazon misused data from independent UK retailers to support its own retail ventures, diverting profits away.
- This lawsuit is said to be the largest collective action of its kind under the Competition Act 1998, representing 35,000 UK businesses.
- BIRA asserts that Amazon’s actions have caused significant financial harm to these independent retailers since 2015.
- BIRA’s legal team is confident in presenting this case to the Competition Appeal Tribunal, seeking justice for affected businesses.
The British Independent Retailers Association (BIRA) has taken a significant step by filing a £1bn damages claim against Amazon, addressing grievances on behalf of independent retailers across the UK. The association alleges that Amazon has, since 2015, improperly used confidential data from these businesses to enhance its own product offerings, thereby undermining the independent retailers’ market position and profitability.
This legal move is notable, as BIRA represents a substantial collective of 35,000 UK retailers, and the claim is recognised as the largest group litigation related to the Competition Act 1998 within the region. BIRA’s case posits that the total financial impact on the retailers due to these practices amounts to roughly £1.1bn, inclusive of interest.
Andrew Goodacre, the CEO of BIRA, has articulated the position of the association, stating: “While the retailers knew about the large [30%] commissions charged by Amazon, they did not know about the added risk of their trading data being used by Amazon to take sales away from them.” His remarks underscore the unexpected nature of Amazon’s alleged actions, as perceived by the retailers involved.
BIRA’s attorney, Boris Bronfentrinker from Willkie Farr & Gallagher, underlined Amazon’s pivotal role in the retail landscape. He contends that the company had assured retailers of protecting their sensitive data but failed to do so, instead leveraging it to prioritise its operations. This breach of trust is at the core of the damage suffered by the retailers.
The announcement of the claim reflects BIRA’s readiness to confront Amazon in a legal setting, highlighting a longstanding issue of competitive fairness and market ethics. The association is optimistic that the Competition Appeal Tribunal will validate their claim, thereby facilitating the pursuit of compensation for the independent businesses affected.
BIRA’s legal action marks a pivotal moment for the independent retail sector in seeking accountability and redress from major ecommerce entities.
