Difederico v. Amazon.com, Inc.

Difederico v. Amazon.com, Inc.

The motion for certification was dismissed because, assuming the pleaded facts true, the Statement of Claim fails to disclose a reasonable cause of action: plaintiffs did not plead sufficient material facts for the constituent elements (actus reus and mens rea) of ss.45 or 46, and on a plain reading the MFN clause in S-4 and the Fair Pricing Policy are not the unambiguously harmful 'hard-core' cartel agreements that s.45 was intended to reach (such conduct is instead the subject of the civil s.90.1 regime); consequently the claims have no reasonable prospect of success.

Citation
2023 FC 1156
Parties
Plaintiff: Stephanie Difederico; Plaintiff: Jameson Edmond Casey; Defendant: Amazon.com, Inc.; Defendant: Amazon.com.ca, Inc.; Defendant: Amazon.com Services LLC; Defendant: Amazon Services International, Inc.; Defendant: Amazon Services Contracts, Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
28 August 2023
Procedural Posture
Proposed Class Proceeding / Certification Motion (motion to Certify Dismissed)
Outcome
Motion to certify dismissed; certification denied
Legal Topics
Section 45 Competition Act, Section 46 Competition Act, Most Favoured Nation Clause, Fair Pricing Policy, Certification: Reasonable Cause of Action, Vertical Vs Horizontal Agreements, Program Policies and Platform Liability
Source Language
English
Competition Law Antitrust Class Actions Civil Procedure Commercial Law Section 45 Competition Act Section 46 Competition Act Most Favoured Nation Clause +4 more

Case Brief

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Parties

Stephanie Difederico

Plaintiff

Jameson Edmond Casey

Plaintiff

Amazon.com, Inc.

Defendant

Amazon.com.ca, Inc.

Defendant

Amazon.com Services LLC

Defendant

Amazon Services International, Inc.

Defendant

Amazon Services Contracts, Inc.

Defendant

Procedural Posture

Proposed Class Proceeding / Certification Motion (motion to Certify Dismissed)

Legal Issues

  1. 1 Whether the pleadings disclose a reasonable cause of action under s.36(1)(a) based on alleged contraventions of ss.45 and 46 of the Competition Act
  2. 2 Whether the MFN clause in S-4 constitutes an 'agreement' among competitors within the meaning of s.45
  3. 3 Whether the Amazon Marketplace Fair Pricing Policy constitutes an 'agreement' among competitors within the meaning of s.45

Ratio Decidendi

The motion for certification was dismissed because, assuming the pleaded facts true, the Statement of Claim fails to disclose a reasonable cause of action: plaintiffs did not plead sufficient material facts for the constituent elements (actus reus and mens rea) of ss.45 or 46, and on a plain reading the MFN clause in S-4 and the Fair Pricing Policy are not the unambiguously harmful 'hard-core' cartel agreements that s.45 was intended to reach (such conduct is instead the subject of the civil s.90.1 regime); consequently the claims have no reasonable prospect of success.

Court Disposition

Motion to certify dismissed; certification denied

Orders

  • This Motion to certify the plaintiffs' action as a class proceeding is dismissed.
  • No costs are awarded.