Apple and Amazon to Face UK Class-Action Lawsuit Over 2018 Sales Agreement

Britain’s Competition Appeal Tribunal has given the green light for a consumer class-action lawsuit against Apple and Amazon to proceed, centering on a 2018 sales agreement. The ruling allows the claim to move forward for purchases of Apple and Beats products made on Amazon's UK marketplace, but rejected a broader claim covering sales from other retailers.

Tribunal Certifies Amazon-Specific Claim

The tribunal certified the case as an opt-out collective proceeding, meaning affected consumers are automatically included unless they choose to opt out. The lawsuit, brought on behalf of an estimated 28.9 million UK consumers, alleges that an October 2018 agreement between the two tech giants was anticompetitive and led to higher prices.

However, the tribunal refused to certify claims related to purchases from Apple’s own website, physical stores, or other third-party retailers. It stated that the expert evidence provided did not present a "credible methodology" to prove that the Amazon agreement had a direct impact on prices in these other channels. Both Apple and Amazon deny their agreement was unlawful, and the tribunal has not yet ruled on the merits of the allegations.

The Core Allegations

The lawsuit claims the 2018 deal unlawfully excluded most independent resellers of Apple products from Amazon’s UK marketplace. According to the claimant's evidence, which the tribunal described as "plausible, credible and grounded in the facts," this restriction stifled competition and inflated prices for consumers shopping on the platform.

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Key evidence cited in the claim includes:

• Amazon Retail’s share of Apple product sales on its own marketplace surged from 25% before the agreement to 99% afterward.
• An expert analysis suggested that discounts on iPhones relative to their recommended retail price fell from 91% in 2017 to 49% in 2021.
• The same analysis estimated a 4.1% effective price increase for iPhones on Amazon.

Financial Stakes and Next Steps

The claimant estimates total consumer losses for the period between 2019 and November 2028 could reach up to £306 million, including interest. This equates to an average of approximately £37-£39 per affected customer. The tribunal did stipulate changes to the case's funding arrangements and reduced the proposed remuneration for the class representative, Justin Le Patourel.