Apple and Amazon are reportedly facing a revived UK consumer lawsuit worth up to £306m over claims that an agreement between the two companies restricted competition and pushed up prices for shoppers buying Apple products through Amazon.
The Competition Appeal Tribunal ruled that claims relating to Apple and Beats products purchased via Amazon’s UK marketplace can proceed, reviving part of a case that had previously been blocked.
The lawsuit alleges that Apple and Amazon struck an agreement in 2018 limiting which third-party sellers could offer Apple and Beats-branded products on Amazon, reducing competition on the marketplace and leading to higher prices for consumers.
The claimant estimates the portion of the case allowed to proceed could be worth between £289m and £306m, including interest.
However, the tribunal rejected a broader claim covering Apple products bought directly from Apple and other retailers, finding there was not enough evidence at this stage to show that the alleged conduct had also inflated prices outside Amazon’s marketplace.
Judge Kelyn Bacon said the Amazon marketplace claims were “plausible, credible and grounded in the facts”, while describing the wider theory relating to other retailers as too speculative.
Apple and Amazon have both denied wrongdoing.
Apple said it “strongly” disagreed with the allegations and argued that its agreement with Amazon was designed to combat counterfeit goods being sold through the marketplace. Amazon said the remaining claim was “without merit” and that it was confident this would become clear as the case progresses.
The legal action was refiled by consumer representative Justin Le Patourel after an earlier version of the case, brought by consumer law academic Christine Riefa, was blocked by the tribunal amid concerns over litigation funding and the suitability of the proposed class representative.
The latest ruling means the case can now move forward on behalf of shoppers who bought Apple products through Amazon’s UK marketplace, although no finding has yet been made that Apple or Amazon breached competition law.
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