Apple and Amazon are facing a revived consumer lawsuit in the United Kingdom over allegations that they restricted competition and contributed to higher prices for Apple products sold through Amazon’s marketplace.
The UK Competition Appeal Tribunal ruled on Monday that part of the case could proceed, allowing consumers who bought Apple products through Amazon’s marketplace to pursue claims against the two companies.
The lawsuit centres on an alleged agreement reached between Apple and Amazon in 2018 that restricted which third-party sellers could offer Apple and Beats-branded products on Amazon’s UK website.
The claimant alleges that the restrictions reduced competition between sellers and ultimately resulted in consumers paying higher prices for the products.
However, the tribunal rejected a separate part of the case involving Apple products purchased directly from Apple and other retailers, saying there was insufficient evidence at this stage to support the broader claims.
Judge Kelyn Bacon, who led the three-member tribunal, said the claims relating to purchases through Amazon’s marketplace were “plausible, credible and grounded in the facts.”
The tribunal found there was a realistic basis for arguing that restrictions placed on resellers could have contributed to higher prices for consumers buying Apple products through Amazon.
It said, however, that the wider claims concerning products sold through Apple’s own stores and other retailers were based on a “complex and speculative theory of harm.”
The consumer claim could be worth between £289 million ($383 million) and £306 million, including interest, according to the claimant.
The case was brought by Justin Le Patourel, who replaced consumer law academic Christine Riefa as the proposed representative of the affected consumers.
A similar lawsuit brought by Riefa was rejected by the tribunal last year over concerns about the proposed class representative and the funding arrangements for the litigation.
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The claim was subsequently refiled under Le Patourel.
An Apple spokesperson said the company strongly disagreed with the allegations, arguing that its agreement with Amazon was intended to tackle counterfeit Apple products being sold through the marketplace.
Amazon welcomed the tribunal’s ruling and said the remaining claim was “without merit.”
“We’re confident that this will become clear throughout the process,” an Amazon spokesperson said.
Le Patourel welcomed the decision to allow part of the case to proceed but expressed disappointment that the tribunal had not certified the wider claims.
The latest ruling does not establish that Apple or Amazon breached competition law or that consumers were overcharged. It allows the specified claims concerning Apple products purchased through Amazon’s marketplace to move forward for further proceedings.
The case could therefore put further scrutiny on the way major technology companies manage third-party sellers on online marketplaces and the potential impact of those arrangements on competition and consumer prices.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
