- Amazon.com, Inc AMZN faced a U.K. class-action lawsuit for allegedly using a “secretive and self-favoring algorithm” algorithm to abuse its dominant position in the online marketplace.
- Amazon used the algorithm to ensure that the Buy Box nearly always features goods sold directly by Amazon itself or by third-party retailers who pay hefty storage and delivery fees to Amazon, Hausfeld alleged.
- Amazon has breached competition law and caused millions of U.K. customers to pay higher prices for products sold on Amazon.co.uk and the Amazon mobile app by covering better-value deals.
- Also Read: France Slashes Apple’s Antitrust Penalty By 66%: Report
- Julie Hunter, a longstanding consumer rights advocate, is seeking to represent the interests of tens of millions of Amazon users in the collective action, likely to be filed before the end of October.
- The claim will seek damages from Amazon estimated in the region of £900 million.
- The European Commission pursued two formal antitrust investigations into Amazon.
- An investigation by Italy’s competition regulator concluded in December 2021 that Amazon had abused its dominant position by making certain benefits to third-party retailers conditional on their purchasing of its logistics service.
- Amazon held $60.7 billion in cash and equivalents as of June 30.
- Price Action: AMZN shares traded higher by 0.46% at $115.60 in the premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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