Thrings advises national booksellers’ group in legal fight against Amazon

July 31, 2015
By

Commercial law firm Thrings, which has its largest office in Swindon, is advising the trade association for bookshops in its legal battle against what it sees as market abuse by online retail giant Amazon.

The EU’s Competition Directorate (DGC) has launched a competition law investigation into Amazon's e-book distribution arrangements.

But the Bookseller's Association of the UK and Ireland (BA) wants it widen its probe to consider Amazon’s alleged abusive conduct in relation to the online sale of physical books as well as other issues in relation to e-books in the context of its ongoing investigation.

It also wants the UK Competition and Markets Authority (CMA) to carry out its own investigation into Amazon.

Thrings, led by consultant Michael Nathanson, pictured, and assisted by Robert O’Donoghue of Brick Court Chambers, has lodged submissions with the CMA on behalf of the BA and made a formal complaint to DGC.

BA considers that, based on the information gathered in the UK, it could be argued that Amazon has a very significant dominant position in both e-books and the online retail of other books and may be abusing that position in various respects.

BA chief executive Tim Godfray said: “We are pleased that DGC has decided to launch an investigation into Amazon’s practices in e-books. But we firmly believe the issues go far beyond e-books and are part of a cumulative series of practices with mutually-reinforcing effects.

“An integrated assessment of the issues is required, and we have therefore requested that the scope of the investigation be widened.” 

Booksellers and publishers will be invited to submit further evidence of Amazon’s dominance and abuses, in both e-books and other areas.

Thrings consultant Michael Nathanson, who has acted for the BA for more than 30 years, said: “We are pleased to be assisting the BA with Counsel in these important and complex submissions to the UK and EU competition authorities.

“These allege that Amazon, by abusing its dominant position in the UK and EU book markets, is threatening the very existence of the bookselling industry as we now know it.”

Figures released by the BA last year showed that the number of independent bookshops on Britain’s high street had fallen below 1,000 – a third fewer than in 2005 – in the face of intense competition on price from online retailers such as Amazon as well as supermarkets and e-books.

The latest legal battle follows an influential submission, prepared by Counsel and Thrings on behalf of the BA, which was sent to the UK competition authorities last November.

It was described by the BA as part of ‘the biggest lobbying job it has ever been engaged in’. BA also said the submitted evidence, which was later seen by the DGC in Brussels, played a substantial part in influencing DGC’s decision to mount the initial EU anti-trust investigation.

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