Apple Ordered to Face Antitrust Lawsuit Over Apple Pay Monopoly

Apple Inc. (NASDAQ: AAPL) has been directed by a US District Judge Jeffrey White to face a private antitrust lawsuit filed by payment card issuers. 

The lawsuit alleges that Apple impeded competition for its Apple Pay mobile wallet by establishing a 100% monopoly in the domestic market for tap-and-pay wallets compatible with iPhones, iPads, and Apple Watches. 

The plaintiffs, led by Illinois’ Consumers Co-op Credit Union, Iowa’s Affinity Credit Union, and GreenState Credit Union, contend that Apple’s practices force users of its devices to use its own wallet, unlike Android-based devices that offer a choice between various wallets such as Google Pay and Samsung Pay. 

The lawsuit alleges that Apple’s actions resulted in over 4,000 banks and credit unions paying at least $1 billion in excess fees, adversely affecting consumers by reducing the incentive to enhance the safety and usability of Apple Pay.

“We are happy with this ruling,” Steve Berman, a lawyer for the plaintiffs, said in an email to Reuters. “There are billions at stake so getting by the motion (to dismiss) largely intact was huge for the class.”

Apple sought to dismiss the case, saying that it charged “nominal” fees to even smaller card issuers. The company also emphasized that consumers could still pay with cash, credit and debit cards, and other means.

The judge dismissed a “tying” claim, which accused Apple of coercing buyers of iOS devices into choosing Apple Pay or forgoing competing wallets.


Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Apple Plans to Move 20% of Production from China to India in Response to Coronavirus Chaos

As the coronavirus pandemic continues to wreak havoc around the world, several large companies are...

Wednesday, May 13, 2020, 12:02:00 PM

Six Former Apple Employees Face Charges Over Charity Match Scheme

Six former Apple Inc (NASDAQ: AAPL) employees have been charged with defrauding the tech giant...

Tuesday, January 7, 2025, 04:34:00 PM

Former Apple Employee’s Revelations On Hazardous Waste Violations Lead to Major EPA Investigation

The U.S. Environmental Protection Agency (EPA) has identified at least 19 potential violations of the...

Tuesday, June 25, 2024, 02:04:00 PM

Apple Plans to Manufacture Its Own Chips, Modems for iPhones

Apple Inc. (NASDAQ: AAPL) is planning to replace some components inside its devices with its...

Thursday, January 12, 2023, 04:27:00 PM

Apple Expected to Invest $3.6 Billion in Kia Motors to Produce EVs

The day Elon Musk has been dreading may come a lot sooner than anticipated: Apple...

Wednesday, February 3, 2021, 02:41:00 PM