Apple And Amazon Fight Off $600 Million UK Lawsuit Over Alleged ‘Collusion’

Apple (AAPL.O) and Amazon (AMZN.O) have fended off a $600 million mass lawsuit in the UK over alleged collusion to restrict competition. Consumer law academic Christine Riefa filed the lawsuit, which alleges the tech giants conspired to block the sale of new Apple and Beats products on Amazon’s marketplace. The 2018 deal between Apple and Amazon, which Riefa represents about 36 million British consumers, essentially barred most resellers, leaving consumers with fewer options and less competition, according to the group.

The Competition Appeal Tribunal dismissed the case on Tuesday, valuing the case at 494 million pounds ($602 million) plus interest. The tribunal said Riefa did not have the ‘sufficient independence or robustness’ to represent the claimant class, citing concerns about third-party litigation funding. This procedural hurdle was decisive in killing the case.

Apple and Amazon, which have denied wrongdoing, had argued the claims were without merit and that the tribunal should dismiss the lawsuit. The ruling, however, is notable given the low bar for certification in such cases. The significance of robust representation and funding arrangements in large-scale consumer litigation is highlighted by this decision.

Riefa’s legal team and spokespeople for Apple and Amazon did not immediately comment after the ruling. The case comes as regulatory bodies and consumer groups continue to scrutinize the practices of major tech companies and their marketplace practices for potential anti competitive behavior.

While this dismissal may provide temporary relief for Apple and Amazon, it signals that questions about competition in digital marketplaces are not going away. The ruling is a blow to consumer advocates who want to hold global tech giants to account, but it also highlights the challenges of mass litigation in the UK legal system.

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