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Apple class action overview:
- Who: Apple and Amazon are facing a class action lawsuit claiming from more than 1,500 app developers.
- Why: The app developers claim that Apple and Amazon colluded to increase to cost of Apple products on Amazon.
- Where: The App Store fees class action was filed in front of the United Kingdom’s Competition Appeals Tribunal.
Apple and Amazon are facing a class action lawsuit from customers in front of the United Kingdom’s Competition Appeals Tribunal. The plaintiffs claim that the 2018 agreement between Apple and Amazon was a secret agreement that raised the prices of Apple products on Amazon.
The plaintiffs are asking for £500 million in compensation for the sale prices of Apple and Beats products on Amazon since 2018.
The plaintiffs call the Amazon class action a non-competitive agreement that Apple claims gives customers a better, wholesale price on the Apple and Beats products by selling directly to the customer.
“Millions of consumers in the UK enjoy the services and products of Apple and Amazon,” said Christine Riefa, the proposed class representative. “They do not suspect that those companies collude to make them pay more for their electronics and reduce their choice. I believe that big businesses like Apple and Amazon should behave fairly and compete on merits, not by using underhand tactics.”
By January 2019, the secret agreement caused all independent merchants of Apple and Beats products to leave the Amazon marketplace, according to the Apple class action. The result was a limit on the discounts on those products available to customers.
“Apple and Amazon have worked together to exclude competitors on the Amazon platform and to reduce the availability of discounted products, at their customers’ expense,” said Wessen Jazrawi, Partner at legal firm Hausfeld & Co LLP. “We look forward to working with Christine Riefa to return money to those who have lost out and to making these companies accountable for their unlawful conduct.”
2018 Apple and Amazon agreement led to 7 million paying higher prices for Apple and Beats products, Amazon class action says
The agreement led to 7 million British customers paying higher prices for Apple and Beats products on Amazon. The companies thus cost customers £500 million and British customers have paid higher prices for Apple and Beats products from other retailers, according to the Amazon class action.
Apple and Amazon are facing a class action lawsuit in federal court in Washington over their 2018 agreement, claiming the agreement blocks competition for Apple products on the Amazon marketplace.
Have you purchased an Apple product on the Amazon marketplace? Let us know in the comments.
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