Tech Giants Emerge Victorious in UK Lawsuit
Competition Tribunal Rejects Mass Lawsuit Against Apple and Amazon
In a significant ruling, the UK’s Competition Appeal Tribunal has dismissed a mass lawsuit against tech giants Apple and Amazon, citing concerns over the independence and robustness of the claimant’s representation.
Allegations of Collusion
The lawsuit, brought by consumer law academic Christine Riefa on behalf of approximately 36 million British consumers, alleged that Apple and Amazon had colluded to remove resellers of new Apple products from Amazon’s website in 2018. This, Riefa’s lawyers claimed, reduced competition for Apple and Beats-branded products, ultimately harming consumers.
Defendants Deny Allegations
Apple and Amazon vehemently denied the allegations, labeling the case as “without merit.” The tech giants requested that the tribunal refuse to let the case proceed, citing a lack of evidence to support the claims.
Tribunal’s Ruling
In its ruling, the Competition Appeal Tribunal stated that Riefa had failed to demonstrate sufficient independence and robustness to represent the claimant class, particularly with regards to third-party funding for the litigation. This decision marks a rare instance where the tribunal has refused to certify a case, given the relatively low bar for certification.
Implications of the Ruling
The dismissal of the lawsuit, valued at £494 million plus interest, is a significant victory for Apple and Amazon. The ruling highlights the importance of ensuring that claimants have the necessary independence and robustness to represent the interests of consumers in such cases.
No Comment from Parties Involved
Neither Riefa’s lawyers nor spokespeople for Apple and Amazon have responded to requests for comment on the tribunal’s ruling.
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