In 2023, Apple and Amazon were hit with a class action lawsuit over a 2018 agreement between the two companies that restricts third-party retailers from selling Apple and Beats products on Amazon. This means the two companies engage in antitrust practices that limit competition and ultimately raise prices for the consumers.
This is not the first time Amazon and Apple have faced scrutiny over this particular deal. The two giants were already hit with similar cases in Germany, the USA, Spain and Italy.
Christine Riefa, a consumer law academic, led the case, but the British Competition Appeal Tribunal refused to certify the case since it wasn’t sure of Riefa’s ability to independently protect the interests of the class. Also, the tribunal had concerns about how the lawsuit is funded.
More specifically, the funding agreement states that Asertis, the entity that funded the case, could receive the payout before consumers do. In fact, the class might not receive anything at all in case the lawsuit goes Asertis’ way.
As a result, a new class representative was appointed, which led to the tribunal kickstarting the case once again.
However, the UK tribunal allowed only part of the lawsuit to proceed. The case is now only about Apple products being sold on Amazon, not those bought directly from Apple. The tribunal’s statement says that any claims related to Apple’s own marketplace rest on a “complex and speculative theory of harm.”
Of course, both Apple and Amazon strongly disagree with the case, as the Cupertino-based company believes the agreement protects customers from getting scammed with counterfeit products.
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