Apple accused of breaking competition rules with Apple Pay


Apple accused of breaking competition rules with Apple Pay

< p class="sc-v64krj-0 knjbxw">Apple Pay is a mobile payment service launched in October 2014 in the United States.

A proposed class action lawsuit was filed against Apple on Monday by payment card companies. These accuse the iPhone maker of abusing its dominant position in mobile devices to thwart competition with its Apple Pay mobile wallet.

According to a lawsuit filed in federal court in San Francisco, Apple is forcing consumers who use its smartphones, smartwatches and tablets to use its own wallet for contactless payments. Conversely, Android device makers let customers choose wallets such as Google Pay and Samsung Pay.

Complainant, financial institution Affinity Credit Union of Iowa, US, said Apple's anti-competitive behavior is forcing the more than 4,000 banks and credit unions that use Apple Pay to pay at least US$1 billion (C$1.3 billion) in fees additional per year for this privilege.

The association also said that Apple's behavior does not encourage the Cupertino, Calif., company to improve how Apple Pay works and make it more resistant to security breaches.

Apple's conduct harms not only payment card companies, but also consumers and competition as a whole, the complaint states.

The lawsuit seeks unspecified treble damages and an end to Apple's alleged anti-competitive conduct.

Apple did not immediately respond to requests for comment.< /p>

The company is already facing a hefty fine after European Union regulators said on May 2 that it abused its monopoly on iOS devices and its position dominant on mobile wallets by refusing to give rivals access to its technology.

According to the complaint, Apple charges payment card companies a 0.15% commission on credit transactions and a fixed commission of 0.50 US dollars (0.65 Canadian dollars) on completed debit card transactions. with Apple Pay, while its Android rivals charge nothing.

The plaintiff is represented by the law firms Hagens Berman Sobol Shapiro and Sperling & Slater.

Last August, these firms helped secure a US$100 million (C$129.3 million) settlement for small iOS developers who claimed that Apple charged them excessive commissions.

This complaint comes as Apple reached a US$50 million (C$64.6 million) class action settlement in the United States concerning the butterfly keyboard of its MacBook computers, found to be defective.

With information from Reuters


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