Amazon And Apple Face Nearly £1 Billion Lawsuit, Here’s Why
An ongoing legal proceeding involves allegations that Apple and Amazon entered into an agreement affecting product pricing in the UK. The legal action was initiated at the Competition Appeal Tribunal in London in December, focusing on activities…
An ongoing legal proceeding involves allegations that Apple and Amazon entered into an agreement affecting product pricing in the UK. The legal action was initiated at the Competition Appeal Tribunal in London in December, focusing on activities commencing in October 2018. The case seeks over £900 million in compensation.
The claim suggests that the two companies limited independent sellers' ability to list Apple products on Amazon's marketplace. Subsequently, Amazon primarily sold Apple products through its retail account, with Apple providing Amazon with improved wholesale pricing.
As a result, consumers reportedly experienced higher prices due to reduced seller competition, impacting a range of Apple products including iPhones and accessories. The law firm Hausfeld & Co LLP supports this legal action.
UK consumers are represented in this collective action by Justin Le Patourel, who is associated with JLP A&A Class Representative Limited and supported by Hausfeld & Co LLP. The claim encompasses over 10 million UK individuals who purchased new Apple products from October 2018 onwards through various retailers including Amazon and Apple stores. However, mobile phone contracts are excluded.
An ongoing legal proceeding involves allegations that Apple and Amazon entered into an agreement affecting product pricing in the UK.
The legal action is structured as an opt-out case, meaning all eligible UK consumers are automatically included unless they choose to opt out. The Competition Appeal Tribunal allows such actions when many consumers face similar alleged harms.
The filing asserts that the 2018 agreement effectively removed most independent Apple sellers from Amazon’s platform by January 2019, reducing discount availability and resulting in consumers encountering full prices more frequently.
The claim argues that Apple benefited from increased selling prices across the UK, while Amazon profited by selling Apple products directly at higher margins. This is attributed to the market dominance of both companies.
Similar agreements have been deemed violations of EU competition law by Italian and Spanish authorities. Preliminary economic analysis suggests a comparable conclusion for the UK, as reviewed by Mr. Le Patourel’s team.
Justin Le Patourel emphasizes that consumers relied on both companies without awareness of the purported agreement, leading to increased costs and limited choices. The Tribunal will evaluate whether the claim will proceed within the UK’s legal framework.
Based on reporting by techround.co.uk.