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It comes as no surprise that iPhone prices remain stable even months after launch. However, according to a lawsuit filed back in November, Apple and Amazon allegedly joined forces to artificially inflate the prices of iPhones and iPads sold on the platform, effectively eliminating over 98% of all Apple resellers. Now, in a recent development, U.S. District Judge John Coughenour has denied the request made by Apple and Amazon to dismiss the lawsuit, allowing it to progress further.
As a result, the case will now move forward to evidence-gathering and other pretrial proceedings, representing a significant step for the plaintiffs – all U.S. residents who purchased new iPhones and iPads on Amazon from January 2019 onwards.
“A major win for consumers of Apple phones and iPads,” said Steve Berman, a lawyer for the plaintiffs
The lawsuit argues that both Apple and Amazon signed an agreement in 2018 where Amazon agreed to drastically reduce the number of Apple resellers in exchange for Apple’s regular supply of discounted devices, therefore benefiting both parties. Additionally, the lawsuit also states that prior to this deal, there were approximately 600 third-party Apple resellers on Amazon in 2018, but this number dropped to only seven after the agreement took effect.
Apple’s response
Although the allegations about Apple’s practices have raised some concerns, the company defended its agreement, stating that it helped combat the sale of counterfeit Apple products on Amazon. Additionally, Apple’s attorneys stated in a court filing that such agreements were commonplace and legally acceptable, citing previous rulings that recognized them as pro-competitive and lawful. However, Judge Coughenour noted that any opposing motivations behind the agreement would be addressed in later stages of the litigation.
The outcome of this lawsuit will have implications not only for Apple and Amazon but also for the wider e-commerce landscape. Furthermore, the complaint seeks unspecified triple damages and other forms of relief.