Apple and Amazon face renewed UK antitrust lawsuit

A UK tribunal has permitted a portion of a renewed antitrust lawsuit against tech giants Apple and Amazon to proceed, following allegations that the companies restricted competition for Apple and Beats products sold on Amazon. The dispute stems from a 2018 agreement that allegedly limited third-party sellers from offering Apple and Beats products through Amazon’s marketplace, leading to reduced competition and higher prices for consumers.

While the UK was just one of several markets under scrutiny, the case specifically targets Apple and Amazon’s actions in the United Kingdom. Consumer law academic Christine Riefa, serving as the class representative, accused the companies of price inflation and reduced competition for Apple and Beats products. However, the Competition Appeal Tribunal initially rejected the case, citing concerns over funding and Riefa’s independence.

The court questioned the arrangement where the litigation was financed by Asertis, which could potentially receive payment from any damages award before consumers received compensation. In a recent ruling, the tribunal allowed claims related to Apple products purchased through Amazon’s marketplace to proceed, while dismissing claims involving purchases directly from Apple and other retailers.

The lawsuit could potentially be worth £289 million to £306 million, including interest. Apple and Amazon have both expressed disagreement with the lawsuit, with Apple stating that its agreement with Amazon aimed to curb counterfeit product sales and Amazon asserting that the claim will prove "without merit."