Antitrust Lawsuit Says Apple and Amazon Colluded To Raise iPhone, iPad Prices

A new antitrust class-action lawsuit accuses Apple and Amazon of colluding to raise the price of iPhones and iPads, according to Hagens Berman, the law firm representing consumers against two of the world's largest companies in today's filing. From a report: The lawsuit, filed in the U.S. District Court for the Western District of Washington accuses Apple and Amazon of seeking to eliminate third-party Apple resellers on Amazon Marketplace in a scheme to stifle competition, and maintain premium pricing for Apple products. The class action alleges an 'unlawful horizontal agreement between Apple and Amazon to eliminate or at least severely reduce the competitive threat posed by third-party merchants,' which attorneys say violates federal antitrust laws and has cost consumers.

The lawsuit says the parties' illegal agreement brought the number of third-party sellers of Apple products on Amazon Marketplace from roughly 600 to just seven sellers -- a loss of 98%, and by doing so, Amazon, which was formerly a marginal seller of Apple products, became the dominant seller of Apple products on Amazon Marketplace. The consumer-rights law firm behind the filing has bested Apple in multiple antitrust lawsuits, including a $400 million settlement related to price-fixing of e-books and a $100 million settlement on behalf of iOS developers harmed by App Store policies. Hagens Berman has also brought multiple pending antitrust cases against both defendants.

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