UK Launches Landmark Class Action Against Apple and Amazon Over Alleged Price-Fixing

Apple and Amazon face a major new legal challenge. A proposed UK class action seeks over £900 million in damages. It alleges an unlawful deal harmed competition and kept prices high for British consumers.

The lawsuit targets an agreement made in October 2018. It claims this deal restricted which sellers could offer Apple products on Amazon’s marketplace. The collective action was filed with the Competition Appeal Tribunal in London.

Details of the Alleged Anti-Competitive Deal

The claim centers on a specific arrangement. According to the filing, Amazon agreed to limit the number of independent resellers of Apple and Beats products on its UK platform. In return, Apple allegedly gave Amazon better wholesale prices for its products.

This had a dramatic effect. By early 2019, most independent Apple sellers had vanished from Amazon’s UK marketplace. Reports from Reuters note that this drastically reduced the availability of discounted Apple goods. Consumers were left with fewer choices and often paid higher prices.

The proposed class is broad. It includes any UK resident who purchased a new Apple or Beats product since October 2018. This applies whether the item was bought from Amazon, Apple, or another retailer. The logic is that the alleged scheme artificially inflated prices across the entire UK market.

Legal Precedents and Consumer Impact

This is not the first legal action on this issue. A similar lawsuit was filed in the United States in 2022. In the UK, a previous attempt to bring a collective action was rejected by the tribunal in 2023.

The new claim aims to overcome prior hurdles. It proposes a different class representative and legal structure. The core allegation remains that the companies’ conduct violated UK competition law.

For consumers, the impact is framed as significant. The lawsuit argues that competition drives down prices. By allegedly stifling that competition, Apple and Amazon deprived UK shoppers of potential savings on millions of devices.

This £900 million lawsuit underscores the intense regulatory scrutiny facing big tech. The Apple Amazon lawsuit will test the boundaries of competition law in the digital age. Its outcome could reshape how online marketplaces operate with major brands.

Info at your fingertips

What products does this lawsuit cover?

It covers new Apple hardware, Beats products, and related accessories. It does not include Apple products purchased as part of a mobile phone contract.

Who is eligible to be part of this class action?

Any UK consumer who bought a new Apple or Beats product since October 2018 may be included. This is an “opt-out” action, meaning eligible individuals are included automatically unless they choose to leave.

What is the main allegation against Apple and Amazon?

The claim alleges they made a deal in 2018. This deal supposedly limited third-party Apple resellers on Amazon’s UK site while giving Amazon itself favorable wholesale terms from Apple.

How much compensation is being sought?

The claim seeks damages exceeding £900 million. The exact amount per consumer would depend on the final ruling and the value of eligible purchases.

Has a similar case been filed before?

Yes. A related case was filed in the US. A previous UK collective action was not allowed to proceed. This new filing represents a fresh attempt under a different legal structure.

What is the status of the lawsuit now?

The claim has been filed with the UK’s Competition Appeal Tribunal. It must now be certified by the tribunal to proceed as a full collective action on behalf of millions of consumers.