The British Independent Retailers Association (Bira) has initiated a £1bn legal claim against Amazon, representing 35,000 UK retailers.
- Bira accuses Amazon of misusing retailers’ data to favour its ventures, affecting sales revenue and profits.
- The claim, filed under the Competition Act 1998, is the largest collective action in this context.
- Bira seeks compensation, alleging £1.1bn in damages, including interest, inflicted upon UK retailers.
- The Competition Appeal Tribunal is expected to review and potentially authorise the claim for further proceedings.
On 7 June, the British Independent Retailers Association (Bira) officially filed a substantial £1bn damages claim against Amazon, acting on behalf of 35,000 independent retailers in the UK. This marks a significant move under the Competition Act 1998 and is recognised as the largest collective action of its kind. The association has expressed concerns over Amazon’s practices, which they argue have unfairly impacted the livelihoods of these retailers.
Bira’s grievance centres on allegations that, since October 2015, Amazon has been clandestinely utilising data from independent retailers to bolster its own product entries, which in turn has led to substantial diversion of sales revenue and profits away from the original retailers to Amazon. This exploitation of confidential business data has been framed as a breach of trust by Amazon, benefiting its business at the expense of those who rely on the online platform for their sales.
Andrew Goodacre, CEO of Bira, highlighted that while retailers were aware of the high commission fees—up to 30%—charged by Amazon, they were not informed about the potential misuse of their trading data. He emphasised the filing of this claim as a fundamental step towards obtaining rightful compensation for the damages incurred due to Amazon’s actions.
Representing Bira in this legal confrontation is Willkie Farr & Gallagher, an international law firm. Boris Bronfentrinker, a partner at the firm, accused Amazon of causing financial detriment to numerous retailers by failing to safeguard their confidential data and prioritising its own retail interests. He commended Bira’s decision to take on such a formidable opponent, noting the potential benefits for all UK retailers involved.
The Competition Appeal Tribunal’s authorisation of the claim is anticipated, which would advance Bira’s case and could potentially lead to a significant precedent-setting decision within the retail sector.
Bira’s unprecedented legal challenge aims to secure justice for UK retailers by addressing alleged competitive abuses by Amazon.
