Apple, Amazon Consumer Case Revived in UK Competition Tribunal

Britain’s Competition Appeal Tribunal ruled Monday that claims involving Apple products purchased through Amazon’s UK marketplace can move forward, reviving a significant portion of a case seeking hundreds of millions of pounds on behalf of consumers, Reuters reported. The tribunal declined to certify a broader claim involving purchases made directly from Apple and other retailers.

The litigation centers on an agreement the companies reached in 2018. The claimant alleges that the arrangement reduced the number of merchants permitted to sell Apple and Beats-branded products through Amazon’s UK website, limiting competition and pushing consumer prices higher, according to  Reuters.

The surviving portion of the case could be valued at between £289 million and £306 million, including interest, the claimant said, according to Reuters.

Both companies dispute the allegations.

Apple said the purpose of its arrangement with Amazon was to address counterfeit merchandise being offered through the online marketplace and said it strongly disagreed with the claims, Reuters reported. Amazon welcomed the tribunal’s decision to reject part of the case while maintaining that the remaining allegations lack merit. An Amazon spokesperson said the company expects its position to be borne out as the litigation proceeds, according to Reuters.

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The tribunal drew a distinction between purchases made through Amazon and sales elsewhere in the UK retail market. Judge Kelyn Bacon said the allegations concerning Amazon marketplace transactions had a sufficient factual foundation to proceed, Reuters reported. The tribunal concluded there was a realistic basis for arguing that restrictions imposed on resellers may have resulted in consumers paying more for Apple products on Amazon.

Read more: Apple Opens Early Settlement Discussions With DOJ

The judges were less persuaded by the proposed case involving purchases from Apple itself and competing retailers. According to Reuters, the tribunal found insufficient evidence at this stage to support the contention that the alleged restrictions also raised prices across those sales channels. The broader theory was characterized by the tribunal as speculative.

The ruling gives new momentum to litigation that had previously stumbled over questions surrounding how the proposed consumer class would be represented and financed.

A three-judge panel last year rejected a largely similar lawsuit brought by consumer-law academic Christine Riefa, citing concerns about the proposed class representative and litigation funding arrangements, Reuters reported. The claim was subsequently filed again with Justin Le Patourel replacing Riefa as the proposed representative for affected consumers.

A spokesperson for Le Patourel welcomed the tribunal’s decision to permit the Amazon-related portion of the lawsuit to proceed, while expressing disappointment that the remaining claims were not certified, according to Reuters.

The decision does not resolve whether Apple or Amazon violated competition law or whether consumers ultimately suffered financial losses. Instead, it allows the certified portion of the collective case to advance, leaving the underlying allegations to be tested as the litigation continues.

Source: Reuters