Yazılar

Apple and Amazon Defeat $600 Million UK Lawsuit Over Alleged Collusion

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Apple and Amazon have successfully defended themselves against a mass lawsuit in the UK, which accused the tech giants of colluding to remove resellers of new Apple products from Amazon’s platform. The Competition Appeal Tribunal ruled on Tuesday that the lawsuit could not proceed.

The case was brought by consumer law academic Christine Riefa on behalf of around 36 million British consumers who had purchased Apple or Beats products. Riefa’s lawyers claimed that in 2018, Apple and Amazon conspired to block the majority of resellers of Apple and Beats-branded products from Amazon’s UK marketplace, allegedly reducing competition for these products.

Apple and Amazon argued that the lawsuit, valued at £494 million ($602 million) plus interest, was baseless and urged the tribunal to dismiss it. The tribunal agreed with the tech giants, ruling that Riefa had not demonstrated sufficient independence or robustness to represent the affected consumers. This decision was based on concerns about third-party funding for the litigation.

The refusal to certify the case was notable because the standard for certification is typically low, making it an unusual ruling in such legal matters. Neither Riefa’s legal team nor spokespeople from Apple and Amazon immediately commented on the outcome.

 

German Court Rules Against Deutsche Bank in Postbank Acquisition Lawsuit

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A Cologne higher regional court ruled against Deutsche Bank on Wednesday in a protracted legal battle with shareholders, who argued that the bank underpaid for its acquisition of Postbank. The court’s decision adds to the ongoing challenges facing Deutsche Bank related to this significant transaction.

Background of the Case

The lawsuit involved 13 plaintiffs, former shareholders of Deutsche Postbank, who contended that the acquisition price of 25 euros ($27) per share, paid in 2010, was insufficient. They argued that Postbank was worth more than the amount Deutsche Bank paid, claiming they should have received 57.25 euros per share—the price of Deutsche Bank’s initial 30% stake in Postbank, which occurred just before the collapse of Lehman Brothers and the onset of the global financial crisis.

The full merger between Deutsche Bank and Postbank was finalized in 2018, but legal complications surrounding the acquisition have persisted, impacting Deutsche Bank’s financial outlook.

Financial Impact

The ongoing litigation has weighed heavily on Deutsche Bank’s performance, particularly as recently as the second quarter, when the lender reported a loss of 143 million euros after setting aside 1.3 billion euros related to the Postbank lawsuit. In August, Deutsche Bank managed to reach settlements with nearly 60% of the plaintiffs involved in the case.

On the same day as the court ruling, Deutsche Bank reported a release of 440 million euros in litigation provisions for the third quarter. This release contributed to a better-than-expected net profit attributable to shareholders of 1.46 billion euros ($1.58 billion) during the period.

Next Steps for Deutsche Bank

Following the court’s ruling, Deutsche Bank announced it would assess the judgment, noting that it had already set aside provisions for all outstanding claims from the plaintiffs, including any accrued interest. A spokesperson for the bank mentioned that the court did not permit an appeal to the German Federal Court. However, Deutsche Bank is considering filing a non-admission complaint (a motion for leave to appeal) once it receives the written reasoning for the court’s decision.

In response to the news, shares of Deutsche Bank fell 2.3% as of 10:58 a.m. London time.

Conclusion

This ruling marks another chapter in the ongoing legal struggles for Deutsche Bank concerning its acquisition of Postbank. The bank will need to navigate this ruling while managing its financial performance and shareholder expectations in the coming months.

JPMorgan Chase Seeks Dismissal of Lawsuit Against Russia’s VTB Bank Amid Legal Pressures

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JPMorgan Chase has requested the dismissal of its lawsuit against Russia’s VTB Bank, citing coercion by the Russian state-owned bank. The legal battle began when JPMorgan froze $439.5 million of VTB’s funds following U.S. sanctions imposed after Russia’s invasion of Ukraine. VTB retaliated by suing JPMorgan in a Russian court, which subsequently ordered the U.S. bank to drop its Manhattan lawsuit.

JPMorgan argued that the Russian court’s injunction forced its hand, leaving the bank vulnerable to legal and financial risks in Russia if it did not comply. Although both banks seek to end the Manhattan litigation, they have not reached an agreement on how to phrase the dismissal order. U.S. District Judge Lorna Schofield will decide on the appropriate course of action.

The situation underscores the complexities and pressures faced by global financial institutions navigating sanctions and legal disputes across jurisdictions. VTB, sanctioned by the U.S. Treasury in February 2022, continues to challenge JPMorgan’s actions, complicating the resolution of the frozen assets. Meanwhile, JPMorgan’s assets in Russia have also been frozen, adding to the financial uncertainties the bank faces in the region.