Amazon and Apple have been accused of price manipulation in a legal case that seeks “at least £500m” in compensation.
The collective action, instructed by Hausfeld & Co LLP, claims Amazon and Apple colluded to keep the prices of MacBooks, iPhones, iPads, and Beats headphones “artificially high” following an agreement made in 2018. It was filed by Christine Riefa, a professor of law at the University of Reading.
The case claims third-party sellers of Apple and Beats products virtually disappeared by 2019, leading to the public paying higher prices for these gadgets.
It suggests Amazon benefits through lower wholesale prices, allowing it to make greater profits per sale. “More than seven million” Amazon customers have been affected since the agreement, according to a statement released alongside the case filing.
“At a time when families are under huge financial pressure from high inflation, mortgage, and energy costs, it is more important than ever for consumers to be treated fairly,” Professor Riefa said.
“I decided to bring the claim because consumers individually would never have been able to and the two tech giants would have continued to line their pockets with their unlawful behaviours going unchecked.”
Amazon has denied the price-fixing allegations.
“This claim is without merit, and we’re confident that this will become clear throughout the process,” the company’s own statement reads.
“As a result of our agreement with Apple, customers can find the latest Apple and Beats products on our store, and they benefit from an expanded range with better deals and faster shipping.”
Are your Beats headphones fake?
Apple says the aim of the agreements made with Amazon in 2018 was to reduce the sale of counterfeit products online. Amazon sells products directly, through third-party sellers that use Amazon distribution channels, and from third-party sellers that ship directly to the person making an order.
It naturally has limited control over the latter style of transaction. Fake Beats Solo and Studio headphones have circulated online for years, to the extent Apple has published an article offering ways to tell if the headphones you bought are fakes or not.
“Counterfeit Beats products are cheaply made and don’t provide the same listening experience that makes Beats stand out from other audio electronics,” the page reads.
However, this defence has not stopped Spanish anti-trust body CNMC from fining both Amazon and Apple for sales tactics following the 2018 agreements.
Apple was fined £123.2 million, and Amazon £43.3. million, in a ruling announced on July 18.
In June, a Seattle judge refused to throw out a similar case filed in the US, meaning Amazon and Apple will also face a jury in America.
