In 2022, iPhone Apple Sues For Its Monopoly On Tap-To-Pay
A class action lawsuit has been filed against Apple Pay. This lawsuit accuses Apple of allegedly having an illegal monopoly on contactless payments on iPhones, forcing card issuers to pay certain fees. The lawsuit was brought by Affinity Credit Union, a company responsible for issuing Apple Pay-compatible credit and debit cards. The company’s lawyers chose to turn the lawsuit into a class action lawsuit so that more card issuers could join the fight against Apple.
A class action lawsuit has been filed against Apple Pay. This lawsuit accuses Apple of allegedly having an illegal monopoly on contactless payments on iPhones, forcing card issuers to pay certain fees.
According to a report by The Verge, Apple makes more than $1 billion a year by charging credit card companies a 0.15 percent per transaction Apple Pay fee. Companies have pointed out that the case is different when their customers use Android wallets and do not have to pay anything.
Apple Sues For Its Monopoly On Tap-To-Pay For iPhone
The lawsuit accuses tech giant Apple of violating antitrust law by claiming that Apple Pay is the only service capable of making NFC payments on your iPhone, iPad, and Apple Watch. This automatically leaves iPhone users with no cheaper alternative to Apple Pay.
In addition, Apple prevented card issuers from passing a 0.15 percent fee on each transaction to customers, leaving iPhone owners without having to search for cheaper payment methods. Reports say a similar antitrust case arose in Epic Games’ lawsuit against Apple, in which Apple Pay gives iOS devices a monopoly on “iOS Touch & Pay mobile wallets” and thus restricts developers. of third-party applications and the implementation of the NFC functionality.
But even if the judge agrees that this is true, he can still decide that there is no real monopoly because customers can always switch to Android, where there are other mobile wallets, which may be an unsatisfactory decision for the plaintiff.
According to a press release, the goal of the lawsuit is to cause a change in Apple’s policies, the policy that guarantees that all contactless payments are made through Apple Pay. Also to ensure that card issuers are compensated for fees illegally charged over time.
This is not the first time Apple has had issues with Apple Pay working. The European Union recently objected to third-party developers being unable to use the iPhone’s NFC system for payments due to restrictions leading to “less innovation and fewer options for consumers of mobile wallets on iPhones.” Now the company may also face a lengthy legal battle over this issue in the US.
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