Britain's Competition Appeal Tribunal has allowed part of a consumer lawsuit against Apple and Amazon to proceed, alleging the companies restricted competition in the sale of Apple products on Amazon's UK marketplace. The lawsuit claims Apple and Amazon agreed in 2018 to limit which sellers could offer Apple and Beats-branded products on Amazon's UK website. This allegedly reduced competition and inflated prices for consumers. The tribunal's decision permits claims related to Apple products bought through Amazon's marketplace to proceed.
The three-judge tribunal rejected a broader claim covering products bought directly from Apple and other retailers. An Apple spokesperson said the company "strongly" disagrees with the claims, stating its aim in reaching the agreement with Amazon was to tackle counterfeit products on the marketplace. Amazon welcomed the tribunal's decision, adding that the remaining claim was "without merit". The companies are confident that this will become clear throughout the process.
The claimant, Justin Le Patourel, estimates that the part of the case allowed to proceed could be worth between £289m and £306m, including interest. Le Patourel replaced consumer law academic Christine Riefa as the proposed representative for consumers after the tribunal refused to allow a largely similar lawsuit to go ahead last year. The tribunal had concerns about the proposed class representative and litigation-funding arrangements.
Judge Kelyn Bacon stated that claims relating to Amazon marketplace purchases were "plausible, credible and grounded in the facts". However, the tribunal rejected wider claims relating to other retailers because they rested on a "complex and speculative theory of harm". The ruling noted that there was a realistic basis for arguing that restrictions on resellers could have led to higher prices for consumers buying Apple products through Amazon.
A spokesperson for Le Patourel welcomed the ruling but expressed disappointment that parts of the claim were not certified. The tribunal's decision allows the case to proceed, but it is unclear how the court will ultimately rule. The case will continue to move through the UK's court system.
The lawsuit alleges that Apple and Amazon's agreement in 2018 had a significant impact on consumers. The claimant argues that the restrictions on resellers led to higher prices for Apple products on Amazon's marketplace. Apple and Amazon's actions have been scrutinized by regulators in recent years, with a focus on ensuring fair competition in the tech industry.
The tribunal's ruling is a significant development in the case, but it is not a final decision on the merits of the claims. Apple and Amazon will have the opportunity to defend their actions in court. Key points include:
Key points
- The UK tribunal allowed part of a consumer lawsuit against Apple and Amazon to proceed.
- The lawsuit alleges Apple and Amazon restricted competition in the sale of Apple products on Amazon's UK marketplace.
- The claimant estimates the case could be worth between £289m and £306m, including interest.
