In a significant victory for two of the world’s largest tech companies, Amazon.com Inc. and Apple Inc. successfully persuaded a federal judge to dismiss a consumer antitrust lawsuit alleging they conspired to inflate the prices of iPhones and iPads sold on Amazon’s marketplace.
The lawsuit, filed in the U.S. District Court for the Western District of Washington, accused the companies of entering into an illegal agreement in 2019 that reduced the number of independent Apple product resellers on Amazon from more than 600 to just a handful. Plaintiffs argued this arrangement stifled competition, eliminated discounted options for consumers, and ultimately forced buyers to pay higher prices for Apple devices.
The Court’s Decision
U.S. District Judge Kymberly Evanson dismissed the lawsuit on procedural grounds. She determined that the plaintiffs’ attorneys, from the law firm Hagens Berman Sobol Shapiro, misled the court about the status of their lead plaintiff. The original plaintiff had notified the attorneys in 2022 that they wished to withdraw from the case. However, the firm continued litigating without disclosing this withdrawal and later sought to add new plaintiffs without properly informing the court.
Judge Evanson ruled that because the original plaintiff no longer wanted to proceed, the lawsuit lacked a legitimate lead plaintiff. As a result, the amended complaint was deemed improper, and the case was dismissed. Importantly, however, the dismissal was not with prejudice—the plaintiffs were granted permission to refile an amended complaint, provided they address the procedural deficiencies.
Sanctions Against Plaintiffs’ Attorneys
The judge’s ruling follows an earlier order imposing sanctions on the plaintiffs’ attorneys for their handling of the case. In May, Hagens Berman Sobol Shapiro agreed to pay $223,000 in legal fees to Amazon and Apple after Judge Evanson found the firm had acted improperly in keeping the case alive. The sanctions further highlighted the court’s concern with the plaintiffs’ litigation conduct.
Defendants’ Response
Both Amazon and Apple denied any wrongdoing from the outset. Amazon argued that its reseller agreements with Apple were legitimate distribution arrangements designed to reduce counterfeits and ensure product quality. Apple similarly defended the agreements as standard industry practice, asserting that the company has long been selective about who is authorized to resell its devices.
The dismissal represents a legal win for the companies, but it does not fully end the matter. Because the judge left the door open for the plaintiffs to amend their complaint, the dispute could potentially resurface in court if new plaintiffs step forward with a procedurally sound filing.
Broader Antitrust Implications
This lawsuit is part of a larger wave of antitrust scrutiny aimed at Big Tech firms. While the iPhone pricing case has been dismissed for now, both Apple and Amazon remain embroiled in other major regulatory battles:
- Apple is currently defending itself against a lawsuit brought by the U.S. Department of Justice and several states, which accuses the company of monopolistic practices in the smartphone market. That lawsuit survived Apple’s motion to dismiss in June 2025, keeping the government’s claims alive.
- Amazon is facing a high-profile enforcement action from the Federal Trade Commission (FTC), which alleges the company abuses its dominance in e-commerce to harm both consumers and smaller sellers on its platform.
The outcome of these broader cases may ultimately have more significant implications for how the tech giants conduct business going forward.
Why the Case Matters
The dismissed consumer lawsuit, Floyd v. Amazon.com Inc., spotlighted a critical issue in antitrust law: whether agreements between manufacturers and online platforms that reduce the number of authorized sellers amount to illegal price-fixing or legitimate distribution control.
For consumers, the case underscores growing concerns about the cost of Apple devices, which have steadily risen over the years. For regulators, it highlights the challenges of building strong class action claims against well-resourced corporations when procedural missteps can derail the case before the merits are even considered.
Looking Ahead
Although Amazon and Apple can claim victory today, the litigation battle may not be over. If the plaintiffs bring a new complaint with a proper lead plaintiff, the court may still have to evaluate whether the companies’ 2019 agreement restricted competition in violation of antitrust laws.
In the meantime, both companies continue to face heightened regulatory and legal challenges across the United States. With the government sharpening its focus on the power of Big Tech, consumer advocates are watching closely to see whether courts will take a harder line on practices that limit marketplace competition.
For now, the dismissal provides Amazon and Apple with temporary relief, but their legal battles are far from behind them.
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