Apple (AAPL) and Amazon (AMZN) succeeded in fighting a $602 million class action lawsuit in the UK that accused the big tech of conspiring to block most of the resellers of Apple products from Amazon’s website. The duo won the case on the argument that the plaintiff’s claims had no merit and urged the Competition Appeal Tribunal to stop it from proceeding.
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Here’s More About the Class Action Lawsuit
The case was filed by a consumer law academician and represented roughly 36 million British Apple and Beats consumers. The plaintiff’s lawyers accused Apple and Amazon of secretly agreeing in 2018 to stop resellers from selling Apple and Beats products on the Amazon.com portal in the UK. This allegedly resulted in reduced competition for the tech giants.
However, both Apple and Amazon denied any such conspiracy and refuted the case, which claimed 494 million pounds plus interest in damages. The tribunal ruled in favor of the two American tech companies, stating that the lead plaintiff had not shown “sufficient independence or robustness” to represent the claimant class, especially regarding third-party litigation funding. This is a rare step taken by the tribunal to dismiss the case at such an early stage of litigation.
American big tech are under intense scrutiny for their alleged monopolistic and anticompetitive behavior. Most of the tech giants are facing lawsuits accusing them of leveraging their dominating position to thwart competition.
What Is the Price Target for AAPL?
On TipRanks, the average Apple price target is $244.77, which implies 4.9% upside potential from current levels. Also, AAPL stock has a Moderate Buy consensus rating based on 19 Buys, seven Holds, and three Sell ratings. Analysts remain divided on Apple stock owing to the falling iPhone sales in China, one of its largest markets. In the past year, AAPL shares have gained 27.7%.
Is AMZN a Buy Right Now?
Wall Street is highly optimistic about Amazon stock’s trajectory. On TipRanks, AMZN stock commands a Strong Buy consensus rating based on 48 Buys and one Hold rating. The average Amazon.com price target of $250.67 implies 15.1% upside potential from current levels. Meanwhile, in the past year, AMZN shares have gained 42.2%.
