The internet giant is accused of using its mobile phone market strength to block payment card providers. Iowa-chartered Affinity Credit Union filed the class-action lawsuit in California.
Published: 19 July 2022
Apple didn’t immediately respond to the BBC. Apple “coerces” consumers who use its smartphones, smart watches, and tablets to use its own wallet for contactless payments, unlike Android-based device makers that allow consumers chose wallets like Google Pay and Samsung Pay.
The case claims Apple prohibits users from using competing tap-and-pay mobile wallets. More than 4,000 banks and credit unions that utilise Apple Pay pay at least $1 billion in additional fees yearly, according to Iowa’s Affinity Credit Union.
It argued Apple’s behaviour reduced its incentive to improve Apple Pay and make it more secure. Affinity Credit Union alleged Apple’s actions damage issuers, consumers, and competition. Apple couldn’t afford these costs if it had competition.
The lawsuit demands specific damages and an end to Apple’s anti-competitive behaviour. Apple faces a possible large penalties after EU regulators argued it abused its dominance in iOS devices and mobile payments by refusing to share its technology.
Apple Pay charges issuers 0.15 percent on credit purchases and 0.5 cents on debit transactions, while Android-based rivals charge nothing. Hagens Berman Sobol Shapiro and Sperling and Slater represent the plaintiff.
In August, they helped iOS developers achieve a $100 million settlement for inflated commissions. Apple argued it couldn’t allow NFC access for security reasons, EU digital chief Margrethe Vestager stated in May.
Most mobile payments in Europe use NFC, or Near Field Communication. This technology allows ‘tap and go’ between a customer’s phone and the shop’s payment terminal.
Vestager said on the EU’s website, “Our investigation has not found evidence of a higher security risk.” Our files show that Apple’s behaviour cannot be justified by security concerns.
Google overcharged millions of UK app users, according to allegations. Liz Coll is suing on behalf of 20 million British Google Play Store consumers.
She wants to compensate UK Android smartphone and tablet customers for Google’s alleged overcharging and competition law violations. “Our claim is solid,” she said.
“Google Play Store’s 30% fee on digital purchases is unlawful and unjustified, and we look forward to pressing the case for UK consumers at trial.” Google will defend themselves.
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