Amazon Seeks to Exclude Big Sellers From Automatic £2.7 Billion UK Class Action

The technology and e-commerce company asked a London tribunal on Monday to remove larger sellers from the lawsuit’s opt-out class and instead make their participation subject to an opt-in system, according to Law360’s Sept. 7 report.

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The certified collective action is valued at an estimated £2.7 billion ($3.65 billion) and concerns allegations of anticompetitive conduct by Amazon, Law360 reported. The allegations remain contested, and Amazon’s latest request concerns which merchants should automatically be represented in the proceedings rather than a determination of the underlying claims.

Under an opt-out structure, businesses falling within the definition of a certified class generally become part of the action without having to affirmatively join, subject to applicable rules and exclusions. Requiring a segment of merchants to opt in would instead make those businesses take an affirmative step if they wanted to pursue claims through the collective proceeding.

Amazon’s request therefore could affect the composition of the claimant group and the number of merchants represented in the case if the tribunal accepts the company’s position.

The dispute is being heard in London and forms part of the growing use of collective competition proceedings to pursue large damages claims against major corporations in the UK.

Law360 reported the development on Sept. 7 in an article by Eddie Beaver titled “Amazon Says Big Sellers Should Opt In To £2.7B Class Action.” The publication said Amazon’s argument specifically targeted larger merchants within the already certified opt-out action.

Source: Law360