Amazon (NASDAQ: AMZN) could be facing a $1 billion class-action lawsuit in the UK, according to a CNBC report. The report stated that the tech giant has been alleged of using a “secretive” algorithm to assert its leading position in e-commerce.
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According to the report, the suit is expected to be filed with the Competition Appeal Tribunal in October. Moreover, the suit alleges that it directs customers to its “featured offer,” which results in customers paying more for products as deals offering better value stay hidden.
The suit is being led by a specialist law firm, Hausfeld. Furthermore, the suit alleged that Amazon uses a “secretive and self-favouring 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.”
The Buy Box is an area on Amazon’s home page that gives customers the option to “Buy Now” or “Add to Basket.”
