3.4 C
New York
Sunday, March 19, 2023

Apple-Amazon Conspiracy: Antitrust Lawsuit Claims Tech Giants Conspired to Raise iPhone Prices

In an antitrust lawsuit, Apple Inc. and Amazon.com Inc. have been accused of conspiring to raise the price of the iPhone and iPad by driving virtually all other resellers of new Apple products from Amazon’s website.

An agreement that took effect in January 2019 stipulated that Apple would give Amazon discounts of up to 10% on its products in exchange for Amazon allowing only seven of 600 resellers to continue using its platform. This settlement was the subject of the proposed class action lawsuit in federal court in Seattle, according to Bloomberg.

According to the complaint, after carrying only a small selection of Apple devices other than knockoffs, this made Amazon the top reseller of new iPhones and iPads on its website.

Also read | After Twitter, Now Facebook’s Parent Company Meta Will Suffer Mass Layoffs: Report

Prices rose more than 10 percent as Apple stabilized the prices it charged at retail stores, according to the complaint. Discounts of 20 percent or more that were once common are no longer so, he added.

“Erecting barriers to entry to keep competitors out and raising prices after their removal is precisely the kind of conduct that Congress enacted antitrust laws to prevent,” the complaint says. “The case is open and closed.”

The lawsuit filed Wednesday concerns Americans who bought new iPhones and iPads from Amazon beginning in January 2019.

CLOCK | WION Business News | Apple warns of impact on iPhone shipments due to covid-19 restrictions at Foxconn

It specifically demands the tripling of damages, compensation and the cessation of the so-called “collective boycott” by corporations.

WATCH WION LIVE HERE:

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles