UK Tribunal Allows Part of Consumer Lawsuit Against Apple and Amazon to Proceed

Britain’s Competition Appeal Tribunal has ruled that a consumer lawsuit against Apple and Amazon can proceed, centering on claims the companies engaged in an anti-competitive agreement that inflated prices for Apple products sold on Amazon's UK platform.

Details of the Ruling

The three-judge tribunal on Monday gave the green light to claims related to Apple and Beats products purchased directly through Amazon’s UK marketplace. The lawsuit, brought by consumer representative Justin Le Patourel, alleges that a 2018 deal between the two tech giants unlawfully restricted which third-party sellers could offer these products, thereby reducing competition.

According to the claimant, the part of the case allowed to proceed could be worth between £289 million and £306 million ($383 million), including interest. Judge Kelyn Bacon described the claims concerning marketplace purchases as "plausible, credible and grounded in the facts," according to the ruling.

Scope of the Case

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While the tribunal permitted the core of the lawsuit to move forward, it rejected a broader claim. The plaintiffs had also argued that the alleged agreement had a knock-on effect, causing higher prices for Apple products sold through Apple's own stores and by other independent retailers.

Judge Bacon dismissed this wider argument, stating it relied on a "complex and speculative theory of harm" for which there was not enough evidence at this stage. The ruling narrows the scope of the potential class action to only those consumers who bought the relevant products on Amazon's marketplace.

Background

This legal action is a refiled version of a previous attempt. The tribunal had refused to certify a largely similar lawsuit last year, citing concerns over the proposed class representative and the litigation's funding arrangements. The claim was subsequently revised with Le Patourel as the new representative, leading to Monday's successful, albeit partial, certification.