Amazon and Apple 'Colluded' to Make iPhone and iPad More Expensive, Says Antitrust Lawsuit
Apple and Amazon worked together to raise the price of iPhones and iPads by eliminating third-party Amazon sellers who offered Apple products at a lower cost, according to a new antitrust lawsuit filed today in Washington.
The complaint, filed by Hagens Berman law firm, says that Apple and Amazon had an "unlawful horizontal agreement" that reduced the "competitive threat posed by third-party merchants," a violation of federal antitrust laws. There were around 600 third-party sellers of Apple devices on Amazon Marketplace, which was whittled down to just seven.
Amazon began eliminating third-party sellers after it signed a 2019 deal with Apple to limit the number of resellers on Amazon marketplace to 20 per country. In exchange, Apple provided Amazon with a discounted wholesale price for iPhones and iPads.
By restricting third-party sellers from offering Apple products, Amazon made itself the dominant seller of Apple products on Amazon Marketplace, which Amazon and Apple both "stood to benefit from" even though it "would harm the public."
The lawsuit claims that prior to the agreement, third-party resellers were offering "prices steeply discounted" from those Apple wanted to have for its online storefront, which resulted in lower prices for consumers. There is no word on specific devices that went up in price due to the agreement, and no explanation of whether sellers were offering older devices or current products, nor if these were refurbished devices.
"When Apple and Amazon renewed their existing reseller agreement in 2019, the only losing party to their plan was consumers, who were blindsided by the price increases," Berman said. "Where consumers used to be able to find discounted prices of upwards of 20% for iPhones and iPads for sale on Amazon Marketplace, now they get locked into Apple's premium pricing."
Hagens Berman is aiming for an injunction to prevent Amazon from blocking third-party Apple resellers and reimbursement for consumers who "overpaid for iPhones and iPads."
Popular Stories
Apple today seeded the second release candidate versions of upcoming iOS 18.2, iPadOS 18.2, and macOS 15.2 updates to developers and public beta testers for testing purposes, a week after releasing the first RCs. The first iOS 18.2 RC had a build number of 22C150, while the second RC's build number is 22C151. Release candidates represent the final version of beta software that's expected to see a ...
Apple seeded the release candidate version of iOS 18.2 today, which means it's going to see a public launch imminently. Release candidates represent the final version of new software that will be provided to the public should no last minute bugs be found, and Apple includes release notes with the RC launch.
The iOS 18.2 release notes provide a look at all of the new features that are coming...
In 2025, Apple is planning to debut a thinner version of the iPhone that will be sold alongside the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max. This iPhone 17 "Air" will be about two millimeters thinner than the current iPhone 16 Pro, according to Bloomberg's Mark Gurman.
The iPhone 16 Pro is 8.25mm thick, so an iPhone 17 that is 2mm thinner would come in at around 6.25mm. At 6.25mm,...
Apple is set to release iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. There are a handful of new non-AI related feature controls...
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for.
Apart from their audio and noise-canceling performance, which are generally regarded as...
Apple's forthcoming iPhone SE 4 will feature a single 48-megapixel rear camera and a 12-megapixel TrueDepth camera on the front, according to details revealed in a new Korean supply chain report.
ET News reports that Korea-based LG Innotek is the main supplier of the front and rear camera modules for the more budget-friendly ~$400 device, which is expected to launch in the first quarter of...
2024 is rapidly drawing to a close, but Apple isn't quite done with releases for the year as iOS 18.2 and related operating system updates are arriving very shortly. Apple Intelligence is a major focus for these updates, but there are some other tweaks and improvements arriving for all users.
Looking toward hardware rumors, discussion continues around Apple's work on a foldable iPhone, an...
Norwegian payment service Vipps has become the world's first company to launch a competing tap-to-pay solution to Apple Pay on iPhone, following Apple's agreement with European regulators to open up its NFC technology to third parties.
Starting December 9, Vipps users in Norway can make contactless payments in stores using their iPhones. The service initially supports customers of SpareBank...
