UK Tribunal Allows Part of Consumer Lawsuit Against Apple and Amazon to Proceed
A UK tribunal has permitted a consumer lawsuit alleging price-fixing between Apple and Amazon due to a 2018 deal to move forward in part. The case concerns purchases made through Amazon's marketplace.
London – A UK Competition Appeal Tribunal (CAT) has allowed a portion of a consumer lawsuit against Apple and Amazon to proceed, stemming from allegations that a 2018 agreement between the tech giants restricted competition and inflated prices for Apple products sold on Amazon's platform.
The tribunal's decision on September 28 permits claims related to Apple products bought through Amazon's marketplace. However, it rejected claims that the same agreement also led to higher prices for products purchased directly from Apple or other retailers. The portion of the case that may now proceed is potentially worth between £289 million and £306 million, including interest.
Judge Kelyn Bacon stated that the claims concerning purchases via Amazon were "plausible, credible and grounded in the facts." Nevertheless, the tribunal found insufficient evidence at this stage to extend the alleged harm to other retail channels, characterizing that argument as a "complex and speculative theory of harm."
The dispute originates from a 2018 arrangement where Apple and Amazon expanded the direct availability of Apple and Beats products on Amazon. Under this deal, only Apple-authorized resellers could sell these items on the platform, with unauthorized listings slated for removal from January 2019. The claimants argue this significantly reduced competition from independent sellers, resulting in fewer choices and higher prices for consumers.
Apple maintains the agreement was intended to combat counterfeit products and strongly disputes the allegations. Amazon also rejected the remaining case as "without merit." A similar lawsuit filed in the US was previously dismissed.