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Apple Inc and Amazon.com Inc were accused in an antitrust lawsuit on Wednesday to drive up the prices of iPhones and iPads. The lawsuit claimed that Amazon and Apple colluded to eliminate third-party sellers on Amazon who offered these products at a lower price.
The law suit was filed by law firm Hagens Berman in Washington. It alleged that the companies had an ‘unlawful horizontal agreement’ to reduce the ‘competitive threat posed by third-party merchants’ violating the US antitrust laws.
The lawsuit claimed that Amazon expelled third-party sellers after it signed a deal with Apple in 2019. The number of resellers on Amazon for Apple reduced to 20 per country, according to reports. Apple, in return, gave Amazon up to 10 per cent discount on its products. Based on a MacRumors report, there were about 600 third-party sellers of Apple devices on Amazon, but later only seven were left.
Also read: Amazon launches Prime Video Mobile at ₹599/year
This transformed Amazon into the dominant reseller of new iPhones and iPads. According to a Reuters report on the lawsuit by plaintiff Steven Floyd of Williamsport, Pennsylvania, prices rose more than 10 per cent, while Apple stabilised the prices it charged in retail stores.
Reuters reported that Floyd paid $319.99 for a new iPad he bought from Amazon on the company’s website, and was denied a chance to pay less because competition had been stifled.
The law firm Hagens Berman wants an injunction to prevent Amazon from blocking third-party sellers while also seeking reimbursement for consumers who overpaid for iPhones and iPads.
Apple and Amazon didn’t immediately respond to requests for comment, according to Reuters.
Also read: How to reschedule delivery date and time on Amazon
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