Apple will have to face an antitrust lawsuit alleging iOS Apple Pay dominance
www.theverge.com
Access to Apple’s NFC hardware is a major sticking point.
  • A federal judge partially denied Apple’s request to dismiss a proposed class action lawsuit concerning Apple Pay’s alleged antitrust behavior, initiated by three credit unions.
  • The credit unions claim Apple violated the Sherman Anti-Trust Act by charging excessive processing fees and excluding other digital wallets from accessing its NFC-scanning hardware.
  • The judge acknowledged that iOS tap-to-pay, via Apple Pay, constitutes a distinct market due to its convenience compared to other payment methods like QR code apps.
  • Lawyers argued that Apple Pay is “unlawfully tied” to Apple’s devices, though the judge found this claim unconvincing as Apple Pay is free and not forced upon users.
  • The judge agreed with the accusation of “arbitrary and inflated fees” for payment processing, and identified a lack of competition in the iOS digital payments market as detrimental to consumers.
  • This case follows a preliminary 2022 EU ruling deeming Apple Pay anticompetitive due to Apple’s exclusive use of the iPhone’s NFC reader, with a court meeting scheduled for December 1 to further address the lawsuit.