Apple and Amazon sued for inflating iPhone and iPad prices

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A federal judge in Seattle has ruled that Amazon and Apple will face an antitrust lawsuit accusing the two tech giants of inflating the prices of iPhones and iPads on Amazon’s e-commerce website.

iPhone 14 Pro Max and 13 Pro Max

Late last year, a class action lawsuit denounced a 2019 agreement between Apple and Amazon, under which Amazon agreed to limit the number of Apple resellers on its platform, in exchange for Apple gave Amazon a discount of up to 10% on its products.

U.S. District Judge John Coughenour ultimately denied Apple and Amazon’s request to dismiss the lawsuit based on various legal grounds, allowing the lawsuit to continue moving forward. The case will therefore now proceed to the collection of evidence and other preliminary procedures.which will determine whether companies are guilty or not.

Also Read – iPhone 15: Apple is expected to raise the prices of all smartphones this year

Apple and Amazon are accused of colluding in eliminating third-party sellers

In a motion to dismiss, Apple’s lawyers argued the deal was to prevent counterfeit sales of its products on Amazon, but that ultimately did not convince the judge. According to the original complaint, the site had as many as 600 Apple resellers before the 2019 deal. Subsequently, prices increased by more than 10% on Amazon’s marketplace, and discounts, which were frequently offered, have been removed.

The plaintiffs, who all purchased an Apple product on the platform after 2019, say the deal artificially inflated prices and eliminated or reduced lower prices that might have been provided by third-party resellers.

Steve Berman, attorney for the plaintiffs, called the court’s decision to dismiss Apple and Amazon’s claims ” major win for consumers of Apple phones and iPads “. For their part, Apple’s lawyers called the agreement ” banal » and said that ” the Supreme Court and the Ninth Circuit have consistently recognized that such agreements are pro-competitive and legal “.

From now on, the Seattle judge will have to examine the motivations ” compensatory » of the agreement between Apple and Amazon in the context of the dispute. It now remains to be seen whether or not Apple and Amazon will be found guilty in this case.

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Mubashir Hassan
Expert in tech and gaming, blending industry insights with expertise