Apple Inc. and Amazon.com Inc. have been accused in an antitrust lawsuit of conspiring to raise the price of the iPhone and iPad by removing virtually all other resellers of new Apple products from Amazon’s website.
In a January 2019 agreement, Apple agreed to give Amazon discounts of up to 10% on its products in exchange for Amazon allowing only seven of 600 resellers to continue using its platform. According to Bloomberg, this agreement was the subject of a proposed class action in federal court in Seattle.
According to the complaint, Amazon became the preeminent reseller of new iPhones and iPads on its website after only carrying a small selection of Apple devices in addition to imitations.
According to the complaint, prices increased by more than 10%, while Apple’s retail prices remained stable. Discounts of 20% or more, which were once common, are no longer available, according to the report.
‘Erecting entry barriers to keep competitors out and raising prices as a result of their elimination is precisely the type of conduct that Congress enacted antitrust laws to prevent,’ the complaint stated. ‘The case is over and done with.’
The lawsuit, which was filed on Wednesday, is directed at Americans who purchased brand-new iPhones and iPads from Amazon beginning in January 2019.
It seeks specific treble damages, compensation and an end to the corporations’ alleged ‘collective boycott.’
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