A UK tribunal has permitted a revived antitrust lawsuit against Apple and Amazon to advance, based on accusations that the firms limited competition for Apple and Beats items sold via Amazon. Here’s what you need to know. Background context: In 2023, Apple and Amazon were targeted by a proposed UK class-action suit concerning a 2018 deal reportedly restricting which third-party vendors could sell Apple and Beats products on Amazon’s platform, thereby curbing competition and inflating consumer prices. Notably, the UK wasn’t alone—similar antitrust scrutiny occurred in Italy, Spain, Germany, and the US. The British case was spearheaded by consumer law expert Christine Riefa, alleging price inflation and reduced competition for Apple/Beats buyers in the UK. However, last year the Competition Appeal Tribunal declined to certify the case due to litigation funding concerns and doubts about Riefa’s independence. The tribunal criticized the arrangement where funder Asertis could be paid from damages before consumers, potentially leaving the class with nothing. Quotes from the ruling: ‘Our overall impression was that Prof Riefa was extremely reliant on her legal advisers… we were concerned about her ability to protect the interests of the class robustly and independently.’ and ‘Our key concern… Prof Riefa has not demonstrated sufficient independence or robustness to act fairly and adequately in the interests of the class.’ The tribunal emphasized that a class representative must be an independent advocate, not merely a figurehead. The claim was refiled under new representative Justin Le Patourel, leading to today’s update. UK tribunal allows partial progression: As reported by Reuters, the Competition Appeal Tribunal permitted part of the refiled lawsuit to move forward, focusing solely on Apple purchases made through Amazon’s marketplace. From Reuters: Claims about Apple products bought via Amazon’s marketplace were allowed, but those involving direct Apple purchases and other retailers were dismissed. Judge Kelyn Bacon deemed Amazon marketplace claims ‘plausible, credible and grounded in the facts,’ rejecting broader retailer claims as relying on a ‘complex and speculative theory of harm.’ The proceeding portion may be valued between £289M and £306M, including interest. Apple told Reuters its pact with Amazon aimed to prevent counterfeit sales and ‘strongly’ disputes the lawsuit. Amazon expressed confidence the remaining claim lacks merit. Le Patourel’s spokesperson welcomed the ruling but lamented that parts of the claim weren’t certified. Read Reuters’ full report for complete details. Worth checking out on Amazon
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