Apple and Amazon hit with price-fixing lawsuit alleging collusion

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Apple is dealing with a brand new antitrust class-action lawsuit, and this time it’s being accused of colluding with Amazon to boost costs. The lawsuit, filed within the US District Court docket for the Western District of Washington, accuses Apple and Amazon of working collectively to “stifle competitors” by eliminating third-party Apple resellers on Amazon Market.

Apple + Amazon price-fixing lawsuit

The category-action lawsuit is being spearheaded by Hagens Berman, the legislation agency that has focused Apple a number of instances prior to now. Most notably, Hagens Berman efficiently went after Apple for e-book pricing fixing in 2013, resulting in payouts on to clients. The agency additionally represented small builders in a class-action lawsuit in opposition to Apple, which led to a $100 million settlement. The legal professionals are additionally combating an Apple Pay antitrust lawsuit on behalf of banks.

This new class-action antitrust lawsuit targets Apple and Amazon, saying that the 2 corporations teamed up on an “illegal horizontal settlement to get rid of or a minimum of severely cut back the aggressive menace posed by third-party retailers.”

This settlement “introduced the variety of third-party sellers of Apple merchandise on Amazon Market from roughly 600 to only seven sellers.” The lawsuit facilities round a 2019 settlement between Apple and Amazon, which noticed Apple set up an official storefront on Amazon for the primary time.

The settlement has drawn antitrust scrutiny a number of instances prior to now as effectively:

The lawsuit being dealt with by Hagens Berman explains:

“From the outset of those discussions, the events mentioned ‘gating’ third-party resellers,” the lawsuit states. “In the end Apple proposed, and Amazon agreed, to restrict the variety of resellers in every nation to not more than 20. This arbitrary and purely quantitative threshold excluded even Approved Resellers of Apple merchandise.”

In keeping with the lawsuit, out there knowledge point out that there have been a minimum of 100 distinctive resellers providing iPhones and a minimum of 500 resellers of iPads on Amazon’s platform earlier than the settlement, and after, not more than seven remained, a lower of 98% of third-party Apple product resellers. The lawsuit references that Amazon admitted to Congress that it entered an settlement with Apple that allows solely “seven resellers of latest Apple merchandise” on its platform.

Hagens Berman is encouraging individuals who purchased an iPhone or iPad from the “Purchase Field” on Amazon to contact the agency, saying that these folks “could have overpaid and could also be entitled to compensation underneath consumer-rights legal guidelines.”

  • Product Bought: Any mannequin Apple iPhone or iPad
  • Timeframe: January 2019 – the current
  • Vendor: Bought from Amazon.com

The complete particulars of this lawsuit will be discovered on the Hagens Berman web site. Neither Apple nor Amazon have but addressed the accusations.

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