A new lawsuit has been filed in US courts alleging unfair competition and monopoly practices. It involves the tech giants Amazon y Apple According to the complainants, new requirements were introduced for the sale of devices, leading to price increases. As a result, the end consumers are the ones who suffer the most.
The plaintiffs invited We urge everyone who has purchased an iPad or iPhone through Amazon since 2019 to join the class action lawsuit., so that at some point they could receive a refund for the overcharge. The lawyers argue that there is a violation of federal antitrust laws.
Apple and Amazon are being sued for conspiring to raise the price of iOS devices.
The lawsuit was filed on November 9 by lawyers belonging to to the Hagens Berman law firmThe same firm that has been involved in several legal battles against Apple in recent years. The lawsuit they filed in the Western District of Washington courts concerns the restrictions Apple and Amazon placed on third-party sellers offering their electronic products.
Apple and Amazon conspired to raise iPhone and iPad prices, claims class action lawsuit https://t.co/SN1sNPt3TN
- The Register (@TheRegister) November 10, 2022
The text states that the idea of the alliance was lower levels of competition while maintaining iPhone prices at a premium level. They explain that at one point there were nearly 600 vendors, but now that number has dwindled to seven, limiting buyers' options. They say both companies profited financially, knowing they would harm customers and anyone interested in purchasing equipment.
The agreement between Amazon and Apple came into effect in 2019. The proposal involved limiting the number of resellers on the e-commerce site, in exchange for a special discount on the number of iPads or iPhones ordered through that channel. Those wishing to sell would need prior authorization, making the restrictions extremely stringent. This barrier violates antitrust laws passed by the United States Congress.
The lawyers conclude the statement by affirming that previously buyers found Get up to 20% off an Apple purchase when using Amazon MarketplaceBut now, with the agreement, all prices are similar. It's said that the retailer's profit is 10%, provided that resellers stay away from the site—that is, as long as competition is almost entirely eliminated.
From unfair competitive practices to corporate espionage; this is how dirty the clean money of tech giants really is.
Some argue that in the business world any legal practice is valid, and if it is not entirely correct, a loophole in the laws is sought to justify it. No transnational commercial actor enters the market to lose. And even less so to let others profit from their products. That's why blockades, limitations, restrictions, and similar measures exist—to clear the path as much as possible.
📱European law combating the abuse of power by tech giants comes into effect
The regulation, which will not be applied until May 2023, will seek to put an end to the unfair practices of Google, Amazon, Facebook and Applehttps://t.co/euIvyM2EiT
- El Periódico (@elperiodico) November 1, 2022
In previous occasions, Journalists have reported that Amazon has practices that stifle competition. This increases the prices of products listed on the website. In some cases, they reach agreements with companies to prevent them from listing low prices on other e-commerce sites. According to a lawsuit filed in September in California courts, the plaintiffs stated that without these restrictions, items purchased online would be cheaper.
The company has 160 million customers in the United StatesOf those surveyed, 98% say they prefer to buy products on the Amazon website rather than elsewhere. Amazon leverages this loyalty to secure deals that limit options elsewhere and encourage shoppers to focus on Amazon, even if the price is slightly higher. Amazon denies any monopoly claims and maintains that it offers a wide selection at the best prices.
Apple, for its part, frequently has to send representatives to court to defend its position. Recently, in Madrid, They received a lawsuit for deceptive and aggressive practices related to the marketing of the iPhone. They are accused of concealing the fact that the software consumes a lot of battery power and slows down the devices. This leads to frequent device replacements because performance is no longer the same. This practice has resulted in millions of dollars in expenses that could have been avoided.
Their rivals also accuse them. One of them is Spotify, which claims they use their dominant position to disadvantage competitors in the streaming services sector. They called on authorities to restrict these patterns of behavior. They prevent users from enjoying and discovering new alternatives in the market. Apple says they are simply expanding their offering so that their customers have everything in one place.
Similarly, Apple has faced accusations of industrial espionage. In 2019, engineers from the firm were arrested by the FBI for stealing intellectual property from a China-based company. The complaint revealed that they stole thousands of documents from a personal computer that were part of the corporate files for Project Titan. A similar incident occurred in 2018, also involving the same corporation.
Even as legislators create new mechanisms and intelligence agencies monitor movements, Unfair practices abound in large companies of all types.Every week, new lawsuits are filed in court. Some have merit, others are just noise and achieve nothing. It's a struggle of power against power.
