Why Apple and Amazon are facing legal trouble in UK
What's the story
A UK tribunal has allowed parts of a consumer lawsuit against tech giants Apple and Amazon to proceed. The lawsuit claims that an agreement between the two companies in 2018 restricted competition in the sale of Apple products on Amazon's UK site, leading to price hikes for consumers. However, claims related to other retailers and Apple's own sales were not sufficiently substantiated.
Legal proceedings
Suit related to Amazon marketplace purchases allowed to proceed
The UK's Competition Appeal Tribunal has allowed claims related to Apple products purchased through Amazon's marketplace to proceed.
However, a broader claim covering products bought directly from Apple and other retailers was rejected due to lack of evidence.
The part of the case that has been allowed to proceed could be worth between £289 million and £306 million, including interest, according to the claimant.
Judicial perspective
Judge notes claims were 'plausible' and 'credible'
Judge Kelyn Bacon noted that claims related to Amazon marketplace purchases were "plausible, credible and grounded in the facts."
However, wider claims related to other retailers were rejected as they rested on a "complex and speculative theory of harm."
The tribunal had previously rejected a similar lawsuit brought by consumer law academic Christine Riefa due to concerns about the proposed class representative and litigation funding arrangements.
Refiling
Claim was refiled
The claim was later refiled by Justin Le Patourel, who replaced Riefa as the proposed representative of consumers.
In its ruling, the tribunal said there was a realistic basis for arguing that restrictions on resellers could have led to higher prices for customers buying Apple products through Amazon.
However, it added there was not enough evidence at this stage to support claims that alleged conduct also increased prices for Apple products sold via Apple's own stores or by other retailers.