Amazon and Apple have been in hot water over a deal they made in 2018. The deal resulted in a lawsuit that claimed Apple and Amazon worked together to get rid of 98% of resellers on Amazon, allowing Apple to raise the prices of iPhone and iPad devices sold on the site.
The lawsuit alleges that when Apple signed the deal with Amazon, Amazon agreed to only allow Apple-authorized sellers to offer Apple devices in its marketplace. This meant that prices for Apple devices on Amazon were kept higher than they would have been otherwise.
According to the suit, the deal also involved Apple shipping discounted devices to Amazon in return for limiting the number of sellers offering Apple devices on the site.
A judge overseeing the case involving Apple and Amazon has refused to dismiss the lawsuit, which accuses the pair of artificially raising iPhone and iPad prices on Amazon.
The report by Business Insider also claims that the deal between Amazon and Apple resulted in a reduction of the number of ads and recommendations found on Apple’s Amazon product pages. This was in contrast to product pages for Apple rivals like Samsung, which are full of ads, recommendations, and sponsored results.
Other companies, including Samsung, complained to Amazon about Apple’s preferential treatment and sought a similar deal but were unable to secure one.
Apple claims that the 2018 deal was designed to lower the high rate of counterfeit Apple products on the platform and improve the customer experience. However, the lawsuit continues to unfold, and the outcome remains to be seen.
This ongoing legal battle between two tech giants is a clear indication of the intense competition in the tech industry and the lengths that companies are willing to go to secure market advantages. We will continue to follow this story as it develops.