U.S. District Judge Jeffrey S. White has certified a class-action lawsuit accusing Apple of charging payment card issuers inflated fees for Apple Pay transactions. Here are the details.
Apple accused of ‘extracting $1 billion annually in fees’
As first spotted by AppleInsider, a federal judge has allowed an antitrust lawsuit over Apple Pay fees to proceed as a class action, meaning payment card issuers across the U.S. may now pursue their claims against Apple as a group.
In a press release from Hagens Berman, the law firm representing the plaintiffs, the firm said the certified class includes all U.S. entities that issued payment cards enabled for Apple Pay and paid Apple fees on transactions made with those cards.
The firm argues that while mobile wallets on Android do not charge card issuers transaction fees, Apple charges U.S. issuers 0.15% on credit card transactions and 0.5 cents on debit card transactions made through Apple Pay.
The lawsuit accuses Apple of extracting up to $1 billion annually in fees in violation of federal antitrust law. Apple denies rivals access to the technology needed to develop a competing mobile wallet, according to the class action. On iOS devices, Apple has ensured that only its mobile wallet, Apple Pay, can make contactless payments at the point of sale. Having secured a monopoly for Apple Pay in this fashion, Apple charges card issuers who use Apple Pay, like credit unions and other small financial institutions, supracompetitive fees for a service that is available on Android devices for free, according to the lawsuit.
The firm also highlighted that Judge White “denied Apple’s motion to exclude expert testimony attorneys say establishes common proof that Apple maintains monopoly power in a relevant antitrust aftermarket for tap-and-pay iOS mobile wallets as well as a broader market for all mobile wallets.”
The lawsuit seeks reimbursement for card issuers that paid Apple Pay fees, as well as an injunction against Apple’s challenged policies.
To read the full press release, follow this link.
Worth checking out on Amazon
You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and <a href="https://www.youtube.com/9to5mac” rel=”nofollow noopener” target=”_blank”>subscribe to our YouTube channel
