E-commerce giant Amazon may be hit with a £889 million UK lawsuit after claims it has favoured its own products and abused its dominant market position.

According to the suit, items selected for Amazon’s “buy box” are more easily visible to shoppers and, therefore, provide a better opportunity for achieving sales.

The case is being brought by consumer rights advocate Julie Hunter, and her lawyers said it centres on “a secretive and self-favouring algorithm” used to promote its own products.

Hunter commented: “Many consumers believe that Amazon offers good choice and value, but instead it uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box.

“Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out – relegated down-page, or hidden several clicks away in an obscure corner of Amazon’s website.”

The suit is being brought against Amazon on behalf of British consumers who bought items on Amazon since October 2016. It is on an “opt-out” basis, meaning any potential claimants will be included in the claim unless they choose to opt out.

Hunter’s lawsuit claims Amazon has breached competition law, abused its market dominance, and obscured better deals by leading customers towards these featured offers.

In a statement, a spokesperson for Amazon said: “This claim is without merit and we’re confident that will become clear through the legal process.

“We always work to feature offers that provide customers with low prices and fast delivery.”

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This is not the first time that Amazon has faced competition investigations in the past.

It follows announcement from July by Britain’s antitrust watchdog that it is investigating Amazon over suspected breaches of competition law, including how it selects which products are placed within the “Buy Box” feature.

That same month, Amazon promised to treat all seller equally when ranking offers for the buy box – it was among several concessions made to the EU.

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