Amazon faces $5.4 billion UK lawsuits over alleged market abuse

Amazon is facing mounting legal pressure in the UK, as a London tribunal ruled that two multi-billion-pound lawsuits accusing the e-commerce giant of abusing its market dominance can proceed. The cases, brought separately by third-party retailers and consumers, could cost the company up to £4 billion ($5.4 billion) if successful. Despite the legal setback, Amazon’s stock rose nearly 2 per cent on July 24, as investors appeared to shrug off the litigation threat, at least for now.

Retailers target ‘Buy Box’ algorithm

One of the lawsuits, valued at up to £2.7 billion ($3.64 billion), is led by competition law academic Andreas Stephan on behalf of more than 200,000 third-party retailers. The case centres around Amazon’s alleged manipulation of its “Buy Box” feature, the prominent “Add to cart” and “Buy now” section on product pages.

Stephan’s legal team argues that Amazon gives preferential treatment to products using its own logistics and delivery services, disadvantaging sellers who rely on alternative fulfilment options. Since up to 80 per cent of purchases on Amazon are made via the Buy Box, winning that spot can make or break a seller’s sales performance. Amazon defends the feature, stating it helps customers compare options quickly based on price, condition, and shipping speed.

Consumers claim suppressed competition

In a separate case worth up to £1.3 billion ($1.75 billion), consumer advocate Robert Hammond is representing 49.4 million UK shoppers. His suit accuses Amazon of manipulating how products are presented to users in order to favour its own listings, reducing visibility for independent competitors and thereby distorting fair market access.

Both lawsuits were certified by the UK’s Competition Appeal Tribunal on an opt-out basis, meaning affected retailers and consumers will automatically be included in the proceedings unless they choose otherwise.

Amazon dismisses lawsuits as baseless

Amazon has rejected the allegations, calling the claims “without merit.” A company spokesperson told Reuters, “We’re confident that will become clear through the legal process. Amazon has always focused on supporting the 100,000 businesses that sell their products on our UK store.” The lawsuits come amid growing regulatory scrutiny of US tech giants across the UK and Europe, as lawmakers intensify their efforts to rein in dominant digital platforms.