An antitrust lawsuit accusing Apple of blocking competition in the tap-to-pay market is proceeding, allowing banks and credit unions to collectively sue Apple. U.S. District Judge Jeffrey White certified a class in the lawsuit this week, which includes any U.S. entities that have issued payment cards enabled for Apple Pay and have paid fees to Apple for transactions made through Apple Pay. The judge also denied Apple's motion to exclude expert testimony that the plaintiff attorneys claim demonstrates Apple's monopoly power in the mobile wallet market.
The lawsuit, initially filed in 2022, alleges that Apple collects up to $1 billion annually in fees by restricting access to the iPhone's NFC chip, which prevents competitors from developing mobile wallets that could rival Apple Pay. According to the lawsuit, when an iPhone user makes a purchase using a card linked to Apple Pay, the card issuer is charged a fee of 0.15 percent for credit cards and half a cent for debit cards. For instance, a $1,000 purchase via Apple Pay results in Apple collecting $1.50 from the card issuer.
The complaint claims that Apple compels card issuers to pay these fees by making Apple Pay the sole tap-to-pay option available. It contrasts this with Google's Android system, which allows multiple wallets and does not impose fees on card issuers for contactless payments. The lawsuit argues that Apple would not be able to maintain its fee structure if it were required to support other mobile wallets on its devices.
Since the lawsuit was filed, Apple has modified its policies. As of iOS 18.1, developers can offer NFC contactless payments within their applications and have access to the NFC chip in several countries, including the United States, Canada, Australia, Brazil, Japan, New Zealand, the UK, and the European Economic Area.
The attorneys involved are seeking reimbursement for the fees paid by card issuers and are requesting injunctive relief to end Apple's current policies.