## Amazon Faces Another Competition Lawsuit in the UK
Amazon is once again facing a competition lawsuit in the UK, this time with a claim seeking more than £2.7 billion in damages. The lawsuit, filed by Andreas Stephan, a professor of competition law at the University of East Anglia, represents over 200,000 UK third-party sellers on Amazon. The claim argues that Amazon has abused its dominant position in the supply of marketplace services to third-party sellers in various ways.
## Abuses of Dominant Position and Distortion of Competition
The lawsuit alleges that Amazon discriminates in favor of its own retail offerings over those of third parties and also favors its own logistics services, known as Fulfilled by Amazon (FBA). Additionally, access to Amazon’s Membership product Prime is allegedly unfairly conditioned on the use of FBA. The claim further argues that Amazon distorts inter-platform competition by making it harder for third-party sellers to offer lower prices on other platforms. These abuses have resulted in lost sales, increased costs, and higher fees for third-party sellers.
## Familiar Accusations and Antitrust Scrutiny
The accusations made in the lawsuit are not new, as regional competition authorities have been investigating complaints about Amazon’s use of third-party data and its marketplace operations for some time. Similar antitrust charges have also been brought against Amazon in the US. The UK lawsuit is an opt-out collective action, meaning eligible sellers are automatically included unless they choose to opt out.
## Eligibility and Potential Compensation
To be eligible for inclusion in the lawsuit, sellers must be based in the UK and have used a professional account to sell to UK consumers on Amazon between June 2018 and June 2024. If the claim succeeds, sellers who have not opted out will be entitled to a share of any compensation or settlement. Innsworth Capital Limited, a major litigation funder, is funding the case and will bear all the costs. In return, they stand to gain a share of any compensation awarded or settlement made by Amazon.
## Previous Legal Actions and Level Playing Field Concerns
This is not the first class action-style legal action that Amazon has faced in the UK regarding competition abuse claims. Another damages suit was filed earlier this month by the British Independent Retailers Association. The wave of competition litigation against Amazon follows years of antitrust scrutiny in both the UK and Europe. Concerns have been raised about Amazon’s use of third-party sellers’ data and whether its marketplace provides a level playing field for all sellers.
## Previous Settlements and Damages Claims
While Amazon settled antitrust probes in the EU and the UK without financial sanctions, these settlements did not provide direct relief for victims of abusive behavior. Therefore, damages claims and litigation funders have stepped in to seek compensation on behalf of affected parties. This trend highlights the opportunity for legal action against tech giants to address issues of competition abuse.