Banks and Credit Unions Can Join Lawsuit Over Apple Pay Fees
A U.S. judge certified a class action allowing banks and credit unions to sue Apple over Apple Pay fees. The plaintiffs allege that Apple restricted rivals’ access to the iPhone’s NFC chip.
U.S. District Judge Jeffrey White certified a class in an antitrust lawsuit against Apple. It may include all U.S. entities that issued cards enabled for Apple Pay and paid Apple fees on transactions made with those cards.
White also rejected Apple’s request to exclude expert testimony. Lawyers for the plaintiffs say the testimony supports their claim that Apple has monopoly power in the mobile-wallet market.
Fees on card transactions
Filed in 2022, the lawsuit alleges that Apple collects up to $1 billion annually by restricting rivals’ access to the iPhone’s NFC chip. The plaintiffs say issuers pay Apple 0.15% on credit-card transactions and half a cent on debit-card transactions made through Apple Pay.
At those rates, a $1,000 purchase generates $1.50 for Apple from the card issuer. The complaint says Apple Pay is the only contactless-payment option on the iPhone, while Android supports multiple wallets and does not charge issuers the same fee.
The attorneys seek repayment of fees paid by card issuers and an injunction to end Apple’s policies. Apple changed its rules after the lawsuit was filed: beginning with iOS 18.1, developers could offer NFC contactless payments in their apps in the United States, Canada, Australia, Brazil, Japan, New Zealand, the United Kingdom, the European Economic Area and other countries.
What we know
- The court allowed banks and credit unions to join a lawsuit against Apple.
- The class may include U.S. card issuers that paid fees on Apple Pay transactions.
- The plaintiffs estimate Apple’s annual fees at up to $1 billion.
- The lawsuit says Apple charges 0.15% on credit cards and half a cent on debit cards.
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