Judge fails to dismiss suit accusing Apple and Amazon of conspiring to keep iPhone, iPad prices high

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A judge has ruled that a class-action suit against Amazon and Apple accusing the pair of conspiring to raise Apple device prices on Amazon can proceed.

The ruling means that the suit now continues moving forward as the plaintiffs get to collect evidence and the court hosts pretrial proceedings. A lawyer for the plaintiffs, Steve Berman, called the ruling,"a major win for consumers of Apple phones and iPads."

In 2018, Apple and Amazon signed an agreement that took effect on January 1st, 2019. Under the terms of the agreement, Amazon would allow only Apple-authorized sellers to sell Apple products on Amazon's marketplace. In return, Apple would supply Amazon with a steady supply of discounted Apple products. In other words, Apple would ship discounted devices to Amazon as long as Amazon reduced the number of resellers selling lower-priced Apple products in its marketplace.

The filing adds that Before the Amazon-Apple agreement was made, there were"hundreds of third-party Apple resellers active on Amazon." After the agreement between the two companies went into effect, that number was reduced to seven. Apple's argument is that it made the deal with Amazon to reduce the number of counterfeit Apple devices being sold on the platform.

 

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