The Competition Appeal
Tribunal has granted, subject to funding matters, a collective proceedings
order (CPO) brought by Mr Justin Gutmann to start collective proceedings under
section 47B of the Competition Act 1998 against Apple Inc., Apple Distribution
International Limited, and Apple Retail UK Limited (together, Apple).
The application relates to
alleged breaches by Apple of Article 102 TFEU prior to 31 December 2020. The application claims that the abuse derives
from Apple's lack of transparency in failing to inform consumers of issues
surrounding battery health of their iPhones and the resultant impact on the
performance of their iPhone, such that Apple would have been required to
compensate them.
The CAT first rejected Apple's
strike-out application, which submitted that Mr Gutmann had not established any
abuse on the facts.
However, the CAT found that
there was a reasonable prospect of Mr Gutmann showing at trial that the
negative impact on the performance of affected iPhones was sufficiently
material.
The CAT also found that the
methodology being advanced by Mr Gutmann offered a realistic prospect of
establishing loss on a class wide basis if he established relevant facts at
trial. In addition, it was just and reasonable that Mr Gutmann act as the class
representative in these proceedings.
However the claimants have
informed the CAT they may need to alter their funding arrangements following
the Supreme Court’s recent ruling in PACCAR in July, 2023.
The claimants have also stated
that Apply has settled a similar class action in the US in August 2023 for approximately
USD500 million.
Mr Justin Gutmann v Apple Inc
and others, judgment [2023] CAT 67
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