Apple Pay Antitrust Lawsuit Moves Forward With Class Certification For Banks
U.S. District Judge Jeffrey White certified a class in an antitrust lawsuit accusing Apple of blocking tap-to-pay competition, allowing banks and credit unions to band together against the tech giant. First filed in 2022, the litigation targets Apple Pay fees and the restriction of iPhone near-field communication (NFC) chips.
The Economics of Apple Pay and NFC Restrictions
Apple collects up to $1 billion annually in fees by preventing rival mobile wallets from accessing the iPhone’s NFC chip, according to court documents. When consumers make purchases using cards linked to Apple Pay, card issuers pay a fee of 0.15 percent for credit cards and half a cent for debit cards. For a $1,000 transaction, Apple collects $1.50 from the issuing institution.
The complaint argues that Apple maintains monopoly power over the mobile wallet market by making Apple Pay the exclusive tap-to-pay option on iOS devices. Plaintiff attorneys point out that Google’s Android operating system supports multiple competing wallets and does not charge card issuers fees for contactless payments. Judge White recently denied a motion from Apple to exclude expert testimony that attorneys claim proves this monopoly power.
Did You Know?
The certified class in this lawsuit includes any U.S. entities that issued a payment card enabled for Apple Pay and paid Apple a fee for transactions on that card. Attorneys are seeking both the repayment of those fees and injunctive relief to end Apple’s previous policies.
Global Policy Changes and Recent Adjustments
Apple has altered its platform policies since the original complaint was filed. As of iOS 18.1, developers can offer NFC contactless payments within their own applications. This access to the iPhone NFC chip spans the United States, Canada, Australia, Brazil, Japan, New Zealand, the United Kingdom, and the European Economic Area, among other regions.
Despite these updates, the legal battle over historical fees and market access continues to move through the federal court system as financial institutions seek restitution for past practices.
Frequently Asked Questions
Who is included in the certified class action against Apple?
The class includes any U.S. entities that issued a payment card enabled for Apple Pay and paid Apple a fee for Apple Pay transactions.
How much does Apple charge card issuers for transactions?
Apple collects a 0.15 percent fee for credit cards and half a cent for debit cards processed through Apple Pay.
Can third-party developers now access the iPhone NFC chip?
Yes. As of iOS 18.1, developers in the United States, Canada, the EU, and several other countries can offer NFC contactless payments in their apps.
Stay Updated on Tech Antitrust Legal Battles
Subscribe to our newsletter or explore our related coverage on mobile payments and digital marketplace regulations to follow this case as it develops.
Worth a look