Apple and Amazon Face a Class Action Lawsuit in UK

Apple and Amazon are facing a class action lawsuit for allegedly misusing their market power to increase the prices of Apple products in the UK. Millions of UK consumers who purchased Apple or (Apple-Owned) Beats products from Amazon since October 2018 are seeking compensation. The compensation will be at least £500 million. The suit is filed in front of the Competition Appeals Tribunal today.

In exchange for favorable wholesale prices on all Apple and Beats gadgets, the plaintiffs claim that Amazon restricted independent merchants from selling popular Apple products on its marketplace. That resulted in inflated prices for UK consumers buying Apple and Beats products on Amazon.

According to the accusation, practically all independent sellers of Apple and Beats products vanished from Amazon by January 2019. This leads to fewer discounts for customers and more profits for Apple.

Christine Riefa, a professor of law at the University of Reading, will be the suit’s class representative. Her research focuses on consumer protection legislation and policy. The lawsuit is being launched on an opt-out basis, which means that unless they choose to opt-out, all UK class members are automatically included (and would be eligible for compensation if the litigation is successful). A commercial litigation funder, whose name is being withheld, is financing the legal action, and there are no costs or fees associated with participating in it for the affected consumers.

Customers in the UK who think they qualify for membership in the claimant class can learn more at www.ukappleamazonclaim.co.uk, the claim website. Also, in the UK, product developers are seeking $1BN in compensation for anti-competitive behavior.

Just about two months ago in April 2023, Amazon faced another lawsuit from attorney general Rob Bonta for antitrust violations. Bonta alleged that Amazon forced third-party sellers to accept policies that shot the product prices up. As per the allegations, violating those policies and offering lower prices will face penalties.

The latest lawsuit might uncover a pattern of dishonest behavior from Amazon. If litigation like this turns out to be in claimants’ favor, it would be a huge financial and reputational blow for the tech & e-commerce giants.