Apple class action claims company limits competition in iOS peer-to-peer payment apps

Apple payment app class action overview: 

• Who: Apple is facing a class action lawsuit regarding the company’s actions related to the iOS peer-to-peer payment market. 
• Why: Apple is accused of putting restraints in place that limit new competitors’ ability to enter the peer-to-peer payment marketplace.
• Where: The Apple payment app lawsuit was filed in federal court in California.

Apple is facing a class action lawsuit claiming that the company puts restraints on competitors joining the iOS peer-to-peer payment market and challenging the fees charged by the current options.

Apple uses its own Apple Cash program and has mirroring deals with PayPal’s Venmo, Block’s CashApp and Google’s Google Pay. Those deals limit Apple competition on features and the price competition that would come from it.

“Because Apple uses technological and contractual restraints — including hardware-enforced App Store exclusivity and contractual limitations on web browser technology — to exercise unfettered control over every app installed and run on iPhones and iPads, it is able to (and does) extract the same agreement from any new iOS Peer-to-Peer Payment product as a condition for entry,” the Apple competition lawsuit claims.

Apple Cash, Venmo, Cash App raise fees in lockstep without losing market share, class action says

New peer-to-peer payment apps could use decentralized blockchain/cryptocurrency technology, which would potentially reduce transaction costs and increase throughput, the Apple class action says.

Apple Cash, Venmo and Cash App have continuously raised transaction fees at nearly the same times but have not lost any of their market share, the Apple competition class action said.

​​”No new entrant has stepped in to constrain prices — and when new products (including one backed by Jack Dorsey, the founder of Block, the company behind Cash App) attempted to introduce feature competition by offering peer-to-peer services built on decentralized blockchain technology, Apple ejected them from its platform, citing the agreements challenged in this case,” the Apple competition lawsuit says.

Apple recently agreed to a $25 million discrimination settlement with the U.S. Department of Justice Civil Rights Division Immigrant and Employee Rights Section after the company was accused of discriminating during the hiring process against potential employees based upon immigration status.

Do you use Apple Cash, Venmo or Cash App? Let us know in the comments.

The plaintiffs are represented by Yavar Bathaee, Andrew C. Wolinsky, Brian J. Dunne and Edward M. Grauman of Bathaee Dunne LLP.

The Apple payment app class action lawsuit is Pierre, et al. v. Apple Inc., Case No. 5:23-cv-05981, in the U.S. District Court for the Northern District of California San Jose Division.

Read About More Class Action Lawsuits & Class Action Settlements:

• House committee asks Apple to explain Jon Stewart cancellation, citing China concerns
• Apple lawsuit claims iPhone 15 infringes on patent for ultrawide lens
• Apple class action alleges company fails to deliver promised the cloud storage capacity
• Apple battery settlement payments on the way following appeal dismissal