In an antitrust lawsuit, Apple Inc. and Amazon.com Inc. have been accused of conspiring to raise the price of the iPhone and iPad by eliminating practically all other resellers of new Apple products off Amazon’s website.
An agreement that came to effect in January 2019 stipulated that Apple would give Amazon discounts of up to 10% on its products in exchange for Amazon allowing only seven out of 600 resellers to continue using its platform. This agreement was the subject of the proposed class action in federal court in Seattle, as per Bloomberg reports.
According to the complaint, after only carrying a small selection of Apple devices in addition to imitations, this made Amazon the preeminent reseller of new iPhones and iPads on its website.
Prices increased by more than 10 per cent, while Apple stabilized the prices it charged in retail stores, the complaint said. Discounts of 20 per cent or more that were once common no longer are, it added.
“Erecting barriers to entry to keep competitors out and raising prices in the wake of their elimination is precisely the kind of conduct that Congress enacted antitrust laws to prevent,” the complaint said. “The case is open and shut.”
The lawsuit filed on Wednesday pertains to Americans who purchased brand-new iPhones and iPads from Amazon starting in January 2019.
It demands specific treble damages, compensation, and an end to the claimed “collective boycott” by the corporations.
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