Image depicting someone paying through Apple Watch
Source: Tech Spot

Apple is getting sued for having monopoly on the iPhone’s tap-to-pay
The class action lawsuit accuses the tech giant of antitrust violation

Apple Pay logo depicted
Apple is reportedly getting sued for having monopoly on the iPhone’s tap-to-pay.
Source: The Tech Street Now

This week Apple Pay is faced with a proposed class action lawsuit that claims that Apple Inc holds an illegal monopoly on the iPhone’s contactless payments. This monopoly mainly allows it to compel card issuers into paying a charge. Reports suggest how an Iowa-based Affinity Credit Union came up with the lawsuit. The company mainly issues credit and debit cards which are compatible with Apple Pay. However, the attorneys are aiming to make it a class action case in order to allow other card issuers to join the lawsuit.

As specified by the complaint, the tech giant earns more than $1 billion annually through the 0.15% transaction fees that credit card companies pay. However, these issuers are not forced to pay anything when users pay through its Android counterpart. Further, the lawsuit accuses Apple of violating antitrust law by making sure it is the sole service which can carry out NFC payments on it devices. It states how the company makes sure card issuers does not pass on the fees to customers, in a way that users can no longer find other payment method.


The plaintiffs present the argument that the iPhone maker holds a monopoly on such mobile wallets. In such a case, a question might arise as to which market the judge thinks is relevant to the case. Even if the judge agrees with the claims, they could come up with the decision that the monopoly does not exist as users can choose to switch to using Android and its wallets.

Hagens Berman, the firm taking care of Affinity’s lawsuit has previously handled class class action lawsuits against Apple Inc. Previously, it was part of getting developers a $100 million settlement following accusing the rules of the App Store being unfair. Along with it, the ebook price fixing case that concluded with the tech giant giving $400 million back to customers.

A press release from the law firm reveals how the aim of the suit is to alter the policies that make sure all contactless payments go through Apple Pay. Along with it, force Apple to reimburse card issuers for the fees that it illegally charges them, as the party claims.

Moreover, the European Union recently spoke against third party developers not being able to use to NFC system of the iPhone. It claimed that the limitations result in ‘less innovation’ and options for mobile wallet users on the devices.