Amazon, Apple Worked Together To Keep iPhones And iPads Expensive: Lawsuit

An antitrust lawsuit claims that Apple and Amazon worked together to make iPhones and iPads more expensive. The lawsuit was filed yesterday in Washington and claims that Amazon and Apple "colluded" to eliminate third-party sellers on Amazon who offered iPhones and iPads at a lower price.

The complaint was filed by Hagens Berman, a law firm. According to them, Apple and Amazon had an "unlawful horizontal agreement" to reduce the "competitive threat posed by third-party merchants" - a direct violation of US antitrust laws.

Earlier, there were about 600 third-party sellers of Apple devices on Amazon, but later only seven were left, MacRumors reported.

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Apple, Amazon work together to expand their profits

The lawsuit says that third-party sellers were expelled from Amazon after the company signed a deal with Apple in 2019. The number of resellers on Amazon for Apple were reduced to 20 per country. In exchange, Apple reportedly gave Amazon discounted wholesale prices for iPhones and iPads.

Also read:?Apple's Tracking You Even When Settings Are Turned Off, Researchers Find

Why an antitrust lawsuit, then, you wonder? Quite simply - Amazon positioned itself as the biggest seller of Apple products on its marketplace by limiting access to third-party sellers. Amazon and Apple both "stood to benefit from" this arrangement even though it "would harm the public."

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According to the lawsuit, third-party sellers were offering Apple devices like the iPhone and iPad at discounted prices before the agreement was formalised. This was beneficial to consumers. It's unclear which specific Apple devices became more expensive after the deal. MacRumors claims that there is no explanation of whether sellers were giving older devices at discounts.

Also read:?New EU Law Could Force Apple To Allow Sideload Apps, Download From Third-Party Stores

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Even then, the fact that Amazon and Apple are the only parties to benefit from this deal speaks volumes about why the companies might have done this. Hagens Berman wants an injunction to stop Amazon from blocking third-party sellers on the marketplace while also seeking reimbursement for consumers who "overpaid for iPhones and iPads."

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What do you think about wealthy companies colluding to further expand their profits and market monopoly? Let us know in the comments below.?For more in the world of?technology?and?science, keep reading?Indiatimes.com.?

References

Clover, J. (2022, November 9). Amazon and Apple “Colluded” to Make iPhone and iPad More Expensive, Says Antitrust Lawsuit. MacRumors. https://www.macrumors.com/2022/11/09/amazon-apple-collusion-antitrust-lawsuit/