Here is Amazon’s new strategy to save on its lawsuits

With their billions of users, the tech giants are irreparably in the fire of numerous lawsuits. This is also the case with Amazon and the latest example is provided by these 75,000 Echo users who have submitted individual arbitration requests. The operation would have cost the e-commerce giant quite dearly, which would have spent millions of dollars in costs.

Prefer a lawsuit to arbitration

This prompted Jeff Bezos’ company to react. According to the Wall Street Journal, the company actually changed part of its terms of use on May 3rd in the United States. Previously, the litigation section set out what to do if a customer wanted to file a complaint against the company. We can now read:

Any dispute or claim relating to your use of any Amazon service will be resolved in the state or federal courts in King County, Washington, and you consent to the exclusive jurisdiction of those courts. Each of us forego a lawsuit.

Additionally, the statement asking users to accept the Federal Arbitration Act in order to use Amazon’s services has been removed. However, as our colleagues at The Verge point out, the tech giant would rather pave the way for future litigation than go through arbitration, which for many consumers can be very costly.

It should also be noted that even large technology companies can fall back on amicable agreements within the framework of certain procedures. As we mentioned on Monday, this is particularly the case with Google. An investigation is currently underway against Mountain View for abuse of a dominant position in the online advertising market in France. It allegedly suggested that the competition authority pay a fine and change some of its practices. However, there is nothing to indicate that this request will be granted and the independent managing authority will have to decide soon.

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