Apple products are already pretty expensive, but a new antitrust lawsuit is now accusing Apple and Amazon of cheating the market to keep iPhone and iPad prices high. The lawsuit alleges that the two parties engaged in an illegal conspiracy to unfairly reduce or eliminate competition from third-party sellers on Amazon Marketplace.

The class action proposal comes from law firm Hagens Berman, which has managed to settle more than $500 million in other matters against Apple. Lawyers at Hagens Berman said Apple and Amazon signed an agreement in 2019 that allowed Apple to limit the number of resellers on Amazon Marketplace, while Amazon continued to buy iPhones and iPads at wholesale discounts, unfairly handling the market. He argues that he allowed it to pass.

There were over 600 iPhone and iPad vendors before the deal, but only seven vendors remained after the deal, a massive 98% drop. Meanwhile, Amazon, although initially a small player, has become the dominant seller of Apple products. It was emphasized that both organizations did not deny the existence of this agreement. In fact, Amazon has even acknowledged its existence to the US Congress at other hearings.

Steve Berman, managing partner of Hagens Berman, noted: “When our antitrust litigation team looked at the numbers on the back of this case, we noticed a few red flags very quickly. The sudden loss of 98% of a product’s sales force is truly unheard of, especially when the product was manufactured by the world’s largest tech company and sold by the world’s largest retailer. Apple and Amazon took advantage of this anti-competitive agreement and entered into it knowing it would harm society.”

When Apple and Amazon extended their deals with dealers in 2019, the only losers in their plans were consumers who were baffled by the price hikes. While consumers used to be able to find iPhones and iPads on Amazon Marketplace for more than 20% off, they are now tied to Apple’s premium prices.