Judge certifies class action against Apple over Apple Pay fees to card issuers

U.S. District Judge Jeffrey S. White has allowed an antitrust lawsuit against Apple to proceed as a class action. Payment card issuers accuse the company of charging inflated fees for transactions made through Apple Pay.

The certified class covers U.S. entities that issued cards enabled for Apple Pay and paid Apple fees on transactions involving those cards. The ruling allows the issuers to pursue their claims together.

Fees for credit and debit cards

Hagens Berman, the law firm representing the plaintiffs, says Apple charges U.S. issuers 0.15% on credit-card transactions and 0.5 cents on debit-card transactions through Apple Pay. The lawsuit says Android mobile wallets do not charge issuers transaction fees.

The plaintiffs seek reimbursement for fees already paid by card issuers and an injunction against Apple’s challenged policies. The lawsuit says affected institutions include credit unions and other smaller financial organizations.

Lawsuit challenges Apple’s control

The complaint alleges that Apple withholds technology needed to develop a competing mobile wallet. On iOS devices, it says, only Apple Pay can make contactless payments at the point of sale.

The plaintiffs estimate that Apple extracts up to $1 billion annually in fees and argue that the practice violates federal antitrust law. Apple denies the allegations.

Judge White also denied Apple’s motion to exclude expert testimony. The plaintiffs’ attorneys say the evidence addresses Apple’s alleged monopoly power in the iOS tap-and-pay mobile-wallet aftermarket and in the broader mobile-wallet market.