- Amazon.com, Inc AMZN faced a UK class action lawsuit for allegedly using a “mysterious and self-serving algorithm” to abuse its online dominance marketplace.
- Amazon used the algorithm to ensure that the Buy Box almost always contained goods sold directly by Amazon itself or by third-party sellers who pay high storage and delivery fees to Amazon, Hausfeld said.
- Amazon has broken competition rules, causing millions of UK customers to pay higher prices for products sold on Amazon.co.uk and the Amazon mobile app by covering cheaper deals.
- Also read: France cuts Apple antitrust fine by 66%: report
- Julie Hunter, a longtime consumer rights advocate, is trying to represent the interests of tens of millions of Amazon users in the class action lawsuit, which is expected to be filed before the end of October.
- The lawsuit seeks damages from Amazon estimated at around £900million.
- The European Commission pursued two formal antitrust investigations Investigations against Amazon.
- An investigation by the Italian competition authority concluded in December 2021 that Amazon had abused its dominant position by making certain benefits for third-party retailers dependent on their purchase of its logistics service.
- Amazon held $60.7 billion in cash and cash equivalents as of this writing June 30th.
- Price promotion: AMZN shares traded 0.46% higher at $115.60 on the last check Thursday in the pre-market.
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