Judge certifies class-action lawsuit against Apple over Apple Pay fees

Class-Action Lawsuit Certified

U.S. District Judge Jeffrey S. White has certified a class-action lawsuit against Apple. The lawsuit alleges that Apple charges excessive fees to payment card issuers for transactions made through Apple Pay. This certification allows all U.S. entities that issued payment cards enabled for Apple Pay and paid fees to Apple to join the lawsuit as a group.

Allegations of Inflated Fees and Monopoly

The lawsuit, brought by the law firm Hagens Berman, claims that Apple charges U.S. card issuers 0.15% on credit card transactions and 0.5 cents on debit card transactions via Apple Pay. In contrast, mobile wallets on Android devices do not charge card issuers transaction fees. The plaintiffs accuse Apple of extracting up to $1 billion annually in fees, violating federal antitrust law.

The suit further alleges that Apple denies rivals access to the technology needed to develop competing mobile wallets on iOS devices, ensuring that only Apple Pay can make contactless payments. This practice, according to the lawsuit, establishes a monopoly for Apple Pay, allowing it to charge supracompetitive fees to card issuers.

Expert Testimony and Relief Sought

Judge White denied Apple’s motion to exclude expert testimony, which attorneys state establishes common proof that Apple maintains monopoly power in the market for tap-and-pay iOS mobile wallets and the broader mobile wallet market. The lawsuit seeks reimbursement for card issuers that have paid Apple Pay fees and an injunction against Apple’s current policies regarding mobile wallet access and fees.