Apple and Amazon face revived UK consumer lawsuit over product sales

Britain’s Competition Appeal Tribunal has allowed a portion of a consumer lawsuit against tech giants Apple and Amazon to proceed in the UK. The case alleges that the companies conspired in 2018 to restrict competition among sellers offering Apple products on Amazon’s UK marketplace, thereby raising prices for consumers. The three-judge tribunal permitted claims regarding Apple products purchased through Amazon’s platform, but dismissed broader claims encompassing products bought directly from Apple and other retailers.

The portion of the suit permitted to continue could bring damages totaling £289 million to £306 million, including interest, according to the claimant. Judge Kelyn Bacon deemed the claims linked to Amazon marketplace purchases plausible, credible, and based on facts, but rejected additional claims tied to other retailers due to their basis on a complex and speculative harm theory.

Last year, the tribunal had initially refused to permit a similar lawsuit brought by consumer law academic Christine Riefa due to concerns over the proposed class representative and litigation funding. However, the case was later refiled by Justin Le Patourel, replacing Riefa as the representative of consumers. The tribunal stated that there was a realistic basis to argue that restrictions on resellers might have led to higher prices for consumers buying Apple products via Amazon.

Nevertheless, they found insufficient evidence at present to substantiate claims that the alleged conduct also raised prices for Apple products sold through Apple’s own stores or through other retailers.