Amazon and Apple face revived £306m UK consumer lawsuit over alleged 2018 marketplace deal

Tribunal allows marketplace claims to proceed

Britain’s Competition Appeal Tribunal ruled that consumer claims relating to Apple and Beats products purchased through Amazon’s UK marketplace can proceed, reviving a lawsuit brought by consumer representative Justin Le Patourel. The case alleges Apple and Amazon struck an agreement in 2018 limiting which third-party sellers could list Apple and Beats-branded products on Amazon’s UK site, reducing competition and pushing up prices for shoppers. Judge Kelyn Bacon said the Amazon marketplace claims were “plausible, credible and grounded in the facts,” while the tribunal rejected a broader portion of the case covering Apple products bought directly from Apple and other retailers as too speculative at this stage.

Potential damages and scope of the permitted claim

The claimant estimates the part of the case allowed to proceed could be worth between £289 million and £306 million, including interest. The tribunal found there was a realistic basis for arguing that restrictions on resellers could have led to higher prices for consumers buying Apple and Beats products through Amazon’s marketplace, but said there was not enough evidence at this stage to show the alleged conduct inflated prices at Apple’s own stores or other retailers. The ruling does not establish that either company breached competition law; it permits the marketplace claims to advance through the litigation process.

Apple and Amazon reject the allegations

Apple said it “strongly” disagreed with the claims, with a spokesperson arguing that its agreement with Amazon was intended to combat counterfeit goods being sold through the marketplace. Amazon welcomed the tribunal’s decision on the broader claims but said the remaining claim was “without merit” and that it was confident this would become clear as the case progresses. Both companies have denied wrongdoing, and no finding on liability has been made.

Procedural history of the litigation

The lawsuit was refiled by Justin Le Patourel after an earlier version brought by consumer law academic Christine Riefa was blocked by the tribunal amid concerns over the suitability of the proposed class representative and the litigation funding arrangements. The latest ruling clears the marketplace portion of the action to move forward on behalf of shoppers who bought Apple products through Amazon’s UK marketplace, while other parts of the case were not certified.