An antitrust lawsuit accusing Apple of blocking tap-to-pay competition is moving forward after a U.S. judge certified a class that will allow banks and credit unions to band together to sue Apple.
U.S. District Judge Jeffrey White certified a class that includes any U.S. entities that issued any payment card enabled for Apple Pay and paid Apple a fee for Apple Pay transactions on that payment card. He also denied a motion from Apple to exclude expert testimony that plaintiff attorneys say demonstrates Apple has monopoly power over the mobile wallet market.
Apple Pay class certification and rulings
The suit, first filed in 2022, alleges Apple illegally collects up to $1 billion annually in fees by preventing rivals from accessing the iPhone’s NFC chip to build competing mobile wallets. According to the complaint, when an iPhone user pays with a card linked to Apple Pay the card issuer must pay Apple a fee: 0.15 percent for credit cards and half a cent for debit cards. The complaint gives the example that a $1,000 purchase via Apple Pay results in Apple collecting $1.50 from the card issuer.
Allegations on fees, competition and requested relief
Plaintiffs contend Apple forces card issuers to pay these fees by making Apple Pay the only tap-to-pay option on iPhones. The complaint contrasts this approach with Google’s Android, which supports multiple wallets and, the plaintiffs say, does not collect a fee from card issuers for contactless payments. The plaintiffs further argue Apple would be unable to continue charging what they call “substantial fees” if it were required to support other mobile wallets on Apple devices.
Since the lawsuit was filed, Apple has changed its policies. As of iOS 18.1, developers are able to offer NFC contactless payments in their apps. Developers have access to the NFC chip in the United States, Canada, Australia, Brazil, Japan, New Zealand, the UK, the European Economic Area, and many other countries.
Attorneys for the plaintiffs are seeking repayment of the fees card issuers have paid and injunctive relief to “put an end to Apple’s policies.”
