Apple on Monday was hit with a lawsuit in a proposed class action by payment card issuers accusing the company of abusing its market power in smartphones to inhibit competition for its Apple Pay service.
According to a complaint filed in San Francisco federal court, Apple “coerces” consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments…
The plaintiff, Iowa’s Affinity Credit Union, said Apple’s anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege.
The lawsuit seeks unspecified triple damages, and a halt to Apple’s alleged anticompetitive conduct.
According to the complaint, Apple charges issuers a 0.15% fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing.
MacDailyNews Take: No one is forced to use Apple Pay, nor is anyone forced to use an iPhone.
Apple does not have a monopoly position in smartphones.
Mobile Operating System Market Share Worldwide (StatCounter, June 2022):
• Android: 72.12%
• iOS: 27.22%
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
The headline should read “Company that fleeced Apple for half a billion dollars comes back for round two.”
It’s a dog act
Apple charges less fees at 0.15 – 0,5 than credit cards 2.5-4.x?! why not bitch/sue them?
Apple has 27% mobile share, not 72% like droids, what’s the big deal then?
Apple spend lots time/resources to dev the safest pay system, why should any competitor ride Apple’s back?! do your own damn R&D!
american innovation should not depend on copying but competing
european union is suing Apple & coercing it, as in usa, to open ip ApplePay to 3rd party payment systems?!’ how lazy can flummoxed competitors be?! do your own R&D! Apple did not ask droids/microsoft/blackberry/nokia/huwai etc to open their system so it can ride them! and how damn stupid / shortsighted / irresponsible are the us/eu gov to dilute & make iOS insecure by opening iOS ApplePay?!! how the hell is Apple anti-competitive if they dev ApplePay on their own & iOs allows for other payments systems, just not through ApplePay?!
ever other brand is sickly jealous of Apple & f’ lazy.
“Coerces consumers…” right. Now in North Korea, where the state runs all, coercing consumers is a thing? In a free market system in the US? Hey, you can’t teach the stupid… This is laughable.
Indeed, no one coerces anyone to use an iPhone or any tools on it, etc… just sooo dumb.
You’re right, but so that there be no confusion, the sale of every iPhone should be conducted with a closing, with lawyers on both sides. This way the buyer is fully informed as to the limited rights they have over their property, both present and future.