Apple and Amazon Face UK Class Action Damages Suit Over Price Collusion Claim
A Massive £500 Million Damages Claim is Being Brought Against the Tech Giants
A class-action style damages lawsuit has been filed against Apple and Amazon in the UK, alleging that they colluded to increase the price of Apple products sold on Amazon’s marketplace. The suit seeks compensation of at least £500 million (~$645 million) for millions of consumers who may have been affected by this alleged price-fixing scheme.
Background
The lawsuit claims that Apple and Amazon entered into an agreement to restrict competition among resellers of Apple products, thereby artificially inflating prices for consumers. This is allegedly in contravention of UK and EU antitrust laws. The suit asserts that the two tech giants collaborated to create a closed market where only authorized resellers could sell Apple products, effectively eliminating competition and driving up prices.
Italian and Spanish Antitrust Enforcements
This lawsuit follows similar antitrust enforcements against Apple and Amazon in Italy and Spain, which led to fines totaling almost $440 million. The national competition regulators in these countries found that the pair had colluded to place unlawful restrictions on resellers of Apple kit on their local marketplaces.
Drawing from Italian Regulator’s Decision
The litigants in the UK suit are drawing on information and economic analysis contained in the Italian regulator’s decision to support their claim. They assert that there was no criticism of the factual or economic findings in the Italian decision, which they believe provides a strong basis for their own allegations.
Similar Class-Action Lawsuit in US
In a similar development, Apple and Amazon are also facing a class-action lawsuit in the US alleging price collusion. A federal judge recently denied a motion by the companies seeking to dismiss this consumer antitrust lawsuit, ruling that it could proceed.
Update: Apple Responds to £1BN Class-Action Claim
Apple has responded to a separate class-action damages claim in the UK, which seeks around $1BN in compensation on behalf of UK developers who allegedly have been subject to anti-competitive behavior by the iPhone maker in relation to its App Store fees.
