The class action proposed in federal court in Seattle was against an agreement that took effect in January 2019, under which Apple gave Amazon discounts of up to 10% on its products, in exchange for which Amazon left only seven of the 600 resellers stay on his platform.
This turned Amazon into the dominant reseller of new iPhones and iPads on its website, according to the complaint, when it previously offered only a limited number of Apple products as well as counterfeits.
Prices rose more than 10% as Apple stabilized the prices it charged at retail stores, according to the complaint. Discounts of 20% or more that were once common are no longer so, she adds.
“Putting up barriers to entry to keep competitors out and raising prices in the crowd of their elimination is precisely the type of conduct that Congress enacted antitrust laws to prevent,” the complaint said. “The case is open and closed.”
Apple and Amazon did not immediately respond to requests for comment. Combined product revenue from Cupertino, Calif.-based Apple and Seattle-based Amazon exceeded $125 billion in the third quarter of this year.
Wednesday’s lawsuit covers US residents who have purchased new iPhones and iPads from Amazon since January 2019.
She seeks unspecified treble damages, restitution, and an end to the so-called “group boycott” of the corporations.
The named plaintiff, Steven Floyd of Williamsport, Pennsylvania, said he paid $319.99 for a new iPad he bought on Amazon from the company’s website, and was denied a chance to pay cheaper because the competition had been stifled.
Last month, an Italian administrative court overturned the 173.3 million euro ($173.6 million) fine imposed on Apple and Amazon by the Italian antitrust regulator for alleged price collusion.
The case is Floyd v Amazon.com Inc et al, US District Court, Western District of Washington, No. 22-01599.
(1 euro = 1.002 USD)