Amazon finds itself at the center of a new wave of legal and regulatory scrutiny in Europe, as two major actions challenge its long-standing price-parity policies. In the UK, a consumer group is spearheading a massive class action lawsuit on behalf of millions of customers, while in Germany, antitrust regulators are probing the company's algorithm-driven pricing mechanisms. These cases highlight a shift from past regulatory battles over explicit clauses to a new front focused on the subtle, yet powerful, influence of algorithmic control.

UK class action seeks compensation

The Association of Consumer Support Organisations (ASCO) has initiated a collective opt-out class action against Amazon in the UK, alleging that the e-commerce giant's policies forced consumers to pay inflated prices. The lawsuit, filed with the Competition Appeal Tribunal, represents over 45 million customers who purchased from third-party sellers on the platform between August 2019 and August 2025.

ASCO argues that while Amazon formally removed its explicit price-parity clauses, it has continued to enforce price alignment through other means, such as its ‘Fair Pricing Policy’ and its dominant Buy Box algorithm. This, according to the group, restricts sellers' ability to offer lower prices on competing platforms and ultimately harms consumers.

In a statement, Amazon responded that the claim is "without merit," citing an independent analysis by Profitero that found Amazon to be the lowest-priced online retailer in the UK for the fifth consecutive year.

German regulators probe algorithmic controls

Simultaneously, Germany’s Federal Cartel Office (Bundeskartellamt) has raised its own concerns about Amazon’s pricing mechanisms. The regulator is investigating whether the company's system, which highlights competitively priced listings and suppresses those it deems "overpriced," violates competition laws.

The investigation focuses on how Amazon's algorithms can first, suppress visibility. Listings flagged as ‘uncompetitive’ may be demoted in search results, excluded from advertising, and lose the coveted Buy Box the white box on a product page where a customer can add an item to their cart. Also under the radar is pricing pressure. Sellers who don't comply with Amazon’s dynamically calculated price caps risk being removed from the marketplace altogether, effectively forcing them to align their prices. This marks a new phase of regulatory enforcement, moving beyond the simple presence of a price-parity clause to scrutinizing the opaque, complex code that governs the marketplace.

The historical shift from clauses to code

The current legal challenges are the culmination of a decade-long battle over Amazon's pricing practices.

Table: Amazon’s policies under scrutiny

After the official removal of its clauses, Amazon has faced accusations of replacing them with functionally equivalent policies. Attorneys general in Washington, D.C. have argued in court filings that policies like the Fair Pricing Policy and the Buy Box algorithm are designed to maintain price alignment and prevent sellers from undercutting Amazon on other platforms.

Experts say that ending price-parity clauses can lead to tangible benefits for consumers. A 2021 study by Yu Song of the University of Michigan analyzed the impact of Amazon's 2019 decision to drop its price-parity clauses in the US.

Table: Study findings

The findings of the study align with economic theory, showcasing that when a dominant platform loses its ability to enforce pricing across the web it fosters greater platform competition and results in lower prices for consumers.

Legal and regulatory precedents

The outcome of the UK and German cases will set important precedents. The UK class action, if it proceeds, could result in significant financial compensation for millions of consumers. In the US, similar litigation from the D.C. Attorney General's office is ongoing and could further define the legal boundaries for platforms. The European Union's Digital Markets Act (DMA), which came into force in March 2024, is also a key factor. The DMA designates Amazon as a ‘gatekeeper’ and prohibits unfair practices, including those that might enforce a de facto price-parity. This gives regulators powerful new tools to examine and intervene in the very algorithms that govern Amazon’s marketplace.

As regulators and courts increasingly focus on the behavior of a platform's algorithms, the debate over price-parity is no longer about a simple contract clause but about the fundamental fairness and transparency of digital marketplaces.