With the advancement in science and technology, digital technologies companies have become the giants of economic sectors. Many tech companies, like Facebook, Amazon, Google, etc. have created their monopoly in their respective domains and consolidated their position with time.
Although it is a positive development, the concentration of power in one company can have negative consequences. The legislative instruments of all countries provide freedom of trade and business and encourage competition in each sector so that consumers can choose from multiple options.
In order to protect their interest, the economic giants’ employed different means to restrict the growth of their competitors and prevent fair play. Due to the enormous supply of funds, it is next to impossible for a consumer or small corporate entity to challenge the monopoly of these economic giants.
The litigation funding agreement with a consumer rights advocate
In these bleak circumstances, litigation funding companies have emerged as the light at the end of the tunnel. These companies provide financing to consumers and small corporate entities to pursue their meritorious disputes against the economic giants and ensure fair play for all.
In a recent development, Litigation Capital Management Ltd, a litigation funding company that specializes in dispute financing solutions internationally, has decided to enter into an agreement with a consumer, Julie Hunte, who has filed a claim against Amazon for engaging in anticompetitive conduct in the UK market.
Julie Hunter is a consumer rights advocate and proposed class representative. She claims that Amazon and some entities within the Amazon Group have engaged in anticompetitive conduct and misused its power in the online market to consolidate its monopoly and create hurdles for others. Furthermore, she states that the alleged conduct of Amazon violated section 18 of the Competition Act of 1998 and Article 102 of the Treaty on the Functioning of the European Union.
In a public statement, the CEO of LCM, Patrick Moloney, commented, “We are pleased to enter into this new litigation finance agreement, which represents another important step as we grow our position as a leader in disputes funding in the UK market.”
What does this all mean?
According to Julie Hunter, Amazon used its power in the online market in a way that made it harder for other companies to compete. She thinks that Amazon did this to become even more powerful and have control over the market. Furthermore, Hunter believes that Amazon went against the law where companies shouldn’t use their power to harm competition.
The importance of litigation finance
This announcement of funding by the litigator funder to the Consumer Right advocate against Amazon has received positive responses from different sectors.
This announcement reflects the critical role litigation finance can play in the future to support consumers and small entities to pursue their claims against dominant companies. Without funding from litigation funders, these companies may not be able to pursue their claims and highlight the violations committed by dominant companies in the marketplace.
