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Apple wallet monopoly class action lawsuit overview:
- Who: Affinity Credit Union has filed a class action lawsuit against Apple.
- Why: Apple allegedly blocks competition for its mobile wallet app and causes payment card issuers to pay hefty fees.
- Where: The class action lawsuit was filed in California federal court.
Apple unlawfully blocks competition for its mobile wallet app, according to an Apple class action lawsuit filed July 18 in California federal court.
Affinity Credit Union alleges Apple Pay is the only mobile wallet option for iPhone, iPad and Apple Watch users. Android users, on the other hand, have several mobile wallet options.
“Apple Pay is mostly indistinguishable from Google Pay and Samsung Pay from a functionality standpoint,” Affinity alleges in the Apple class action lawsuit. “Rather, Apple propped up Apple Pay by requiring iOS users to use its Apple Pay service exclusively for tap and pay mobile wallet transactions, barring all would-be and free competitors from accessing the NFC [Near Field Communication] interface needed to compete.”
Apple class action says lack of competition allows company to reap massive profits
Without any competitors on its devices, Apple is allegedly able to charge fees to payment card issuers that are not imposed by any other mobile wallet services. The Apple class action lawsuit asserts these mobile wallet fees generated $1 billion for Apple in 2019.
In comparison, Android digital wallet services do not impose any fees on the payment card issuers. Affinity claims Apple could not sustain the mobile wallet fees if the tech giant faced competition.
Apple also prohibits card issuers from passing the Apple Pay fees on to consumers, preventing issuers from using differential pricing to encourage cardholders to use lower-cost payment methods, Affinity alleges.
Apple bundles its e-commerce payment functionality with its tap-and-pay functionality and imposes the same fees for both types of transactions. “This compounds the injury card issuers suffer,” Affinity says.
Affinity filed the class action lawsuit on behalf of a proposed class of banks, credit unions and other institutions that issue payment cards that can be used with Apple Pay.
Recently, a federal judge approved a $100 million Apple antitrust class action settlement involving allegations Apple charged app developers anticompetitive commission fees on all purchases made within the App Store. Under the terms of the settlement, eligible developers could claim an estimated payment of $250 to $30,000.
Do you use Apple’s mobile wallet? Tell us what you think of the class action lawsuit in the comments!
Affinity is represented by Steve W. Berman and Ben Michael Harrington of Hagens Berman Sobol Shapiro LLP and Eamon P. Kelley, Joseph M. Vanek and Jeffrey H. Bergman of Sperling & Slater PC.
The Apple mobile wallet monopoly class action lawsuit is Affinity Credit Union v. Apple Inc., Case No. 3:22-cv-04174, in the U.S. District Court for the Northern District of California.
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31 thoughts onApple class action alleges tech giant monopolizes mobile wallet market
Apple wallet are crooks
Apple Wallet User For Years
I’ve been using Apple wallet for years and just recently they let almost $10,000 worth of charges to go through that we’re not authorized
This website/people works. I received about $40 refund after WalMart had produce weight issues.
Longtime Apple product user
I’m been using Apple Pay for a years now, please add me!
Add me
Longtime Apple Wallet user
add me phone watch and macbook
Please add me