A federal court in Seattle has dismissed a consumer lawsuit accusing Apple and Amazon of colluding to inflate iPhone and iPad prices on Amazon’s marketplace. The case, filed in 2022, alleged that the two tech giants struck a deal to limit competition by restricting third-party resellers.
Lawsuit Collapses After Misleading Conduct
The lawsuit began when plaintiff Steven Floyd and his legal team claimed Apple wanted to reduce the number of iPhone and iPad resellers on Amazon. According to the complaint, Apple offered discounted wholesale prices in exchange for Amazon limiting its marketplace to select sellers. Both companies consistently denied the accusations.
The case unraveled when Floyd decided to withdraw from the lawsuit. Instead of informing the court, his attorneys told U.S. District Judge Kymberly Evanson that Floyd had become “difficult to reach” while they searched for new plaintiffs. This misrepresentation prompted the judge to revisit earlier rulings.
In her decision, Judge Evanson wrote that the court “relies on counsel to be candid” and said the omissions forced her to revise several prior orders. She concluded that without a valid plaintiff, the case could not proceed. Floyd’s claims were dismissed with prejudice, and attempts to add new plaintiffs were rejected.
Allegations and Aftermath
The original lawsuit alleged that a 2019 agreement between Apple and Amazon violated antitrust laws by cutting the number of third-party Apple product resellers from around 600 to a small, controlled group. Plaintiffs argued that the arrangement drove up prices for consumers who purchased devices on Amazon after January 2019.
Reuters reported that the judge criticized the plaintiffs’ lawyers for wasting court resources and delaying proceedings. Earlier this year, the law firm representing the plaintiffs agreed to pay $223,000 in legal fees to Apple and Amazon for failing to accurately disclose their client’s intentions.
The case, Floyd v. Amazon.com Inc., is now closed. However, the court left the door open for new plaintiffs to file a fresh complaint if they choose.
