• Home
  • Apps
  • Apple Faces Class Action Lawsuit Accusing Firm of Antitrust Violations Over Apple Pay

Apple Faces Class Action Lawsuit Accusing Firm of Antitrust Violations Over Apple Pay

The lawsuit claims that Apple’s conduct forces more than 4,000 banks and credit unions to pay at least $1 billion (roughly Rs. 8,000 crore) of excess fees annually for Apple Pay.

Apple Faces Class Action Lawsuit Accusing Firm of Antitrust Violations Over Apple Pay

Photo Credit: Reuters

As per the complaint, Apple charges issuers a 0.15 percent fee on credit transactions

Highlights
  • Apple's conduct minimises the incentive for the Cupertino
  • The lawsuit seeks unspecified triple damages
  • It also seeks a halt to Apple's alleged anticompetitive conduct
Advertisement

Apple was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet. According to a complaint filed in San Francisco federal court, Apple "coerces" consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets such as Google Pay and Samsung Pay.

The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion (roughly Rs. 8,000 crore) of excess fees annually for the privilege.

It also said Apple's conduct minimises the incentive for the Cupertino, California-based company to make Apple Pay work better and make it more resistant to security breaches.

"Apple's conduct harms not only issuers, but also consumers and competition as a whole," the complaint said.

The lawsuit seeks unspecified triple damages, and a halt to Apple's alleged anticompetitive conduct.

Apple did not immediately respond to requests for comment.

The company already faces a possible heavy fine after European Union regulators on May 2 said it had abused its dominance in iOS devices and mobile wallets by refusing to give payment rivals access to its technology.

According to the complaint, Apple charges issuers a 0.15 percent fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing.

The plaintiff is represented by the law firms Hagens Berman Sobol Shapiro and Sperling & Slater.

Last August, they helped obtain a $100 million (roughly Rs. 800 crore) settlement for smaller iOS developers that claimed Apple overcharged them on commissions.

The case is Affinity Credit Union v Apple, U.S. District Court, Northern District of California, No. 22-04174.

© Thomson Reuters 2022


Missed Apple's WWDC 2022? We discuss every major announcement on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Microsoft Surface Duo 2 With Plastic Body, Dual Rear Camera Leaked on eBay: Report
Bitcoin Targets $23,000 Next While Ether, Altcoins Take Large Strides Forward
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »