Amazon and Apple are being sued for raising the price of the iPhone
Once an iPhone has been launched by Apple its prices remain considerably stable for several months. However, this might not be the actual case. Back in November, a lawsuit was filed against Apple and Amazon. Both companies are accused of their involvement in artificial inflation that resulted in huge prices of iPhones and iPads sold on Amazon. Furthermore, such measures eliminated almost 98% of Apple resellers.
Previously, both companies have requested the authorities to dismiss the lawsuit. However, just recently, U.S. District Judge John Coughenou rejected the request made by the respective companies. thus, indicating that the case will progress further. Shreds of evidence will be collected and pretrial proceedings are anticipated to begin. It is going to e a major achievement for the petitioners who bought new Apple products from Amazon. It includes the time frame of January 2019 onwards.
According to the lawsuit, Apple and Amazon signed a deal in 2018. Amazon assured Apple that it will eliminate maximum Apple resellers and in return, Apple promised to supply discounted devices to Amazon regularly. In this way, both parties strike a win-win deal. In addition to this, the lawsuit details that before this agreement in 2018 before this agreement there were almost 600 third-party Apple resellers on Amazon. However, the number of resellers have been dropped to seven after this deal.
Well, Apple has responded to this situation by arguing that it took all the necessary steps to prevent the sales of forged Apple products on Amazon. In addition to this, the company’s attorneys have highlighted the legal nature of such agreements. According to the company’s attorneys, such deals are lawful. Judge Coughenour pointed out that any opposing reasons for the agreement would be discussed in the course of the trial.
The outcome of this litigation will have effects on both Apple and Amazon as well as the overall e-commerce environment. In addition, the complaint asks for further forms of relief and unspecified triple damages.
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