California Observer

Apple Sued over Apple Pay Monopoly


Image Source: Apple

Regarding Apple Pay, the company has been sued in the US. The technology giant charges with leveraging its dominance in the mobile phone sector. In order to ward off competition from rival payment card providers.

Affinity Credit Union, a chartered credit union with its headquarters in Iowa, filed the class-action lawsuit in a federal court in California.

Apple “coerces” users of its smartphones, smartwatches, and tablets to use its wallet for contactless payments. In contrast to manufacturers of Android-based devices that provide users a choice of wallets. Like Google Pay and Samsung Pay, the complaint claims.

The case claims that Apple forbids users from utilizing rival mobile wallets that can provide rival tap and pay alternatives.

According to Iowa’s Affinity Credit Union, Apple’s anti-competitive behavior compelled the more than 4,000 banks and credit unions.  This was to utilize Apple Pay to pay at least $1 billion in extra fees each year for the privilege.

The company also claimed that Apple’s actions reduced the incentive for the California-based firm. In order to improve Apple Pay’s functionality and make it more secure.

Read Also: Apple Unveils iOS 16 with Improved Lock Screen and Notable Changes to iMessage

A stop to Apple’s claimed anti-competitive behavior demands in addition to unspecified damages.

Other Legal Issues Apple is in

A class action lawsuit involving so-called butterfly keyboards, a feature of some MacBook laptops that drove many users crazy with key-slamming fury over typing errors, was settled on Monday with Apple agreeing to pay $50 million.

The narrow, precision-focused keyboard designed to resemble a butterfly was ultimately not as elegant as the nectar-seeking animal’s fluttering wings. When pressed, characters would repeatedly appear or wouldn’t appear at all, according to many consumers. In addition, some users complained that the devices’ keys were sticky and inconsistent in their responses.

After four years of litigation in the San Jose Division of the U.S. District Court in the Northern District of California finalized the settlement on Monday night. The typing meltdowns serves as the impetus for the class-action complaint that was launched in 2018. Apple claimed that the arrangement did not amount to an admission of guilt on its part.

Apple Exploits Dominance in iOS devices

After European Union officials stated on May 2 that Apple had exploited its dominance in iOS devices and mobile wallets by denying competitors in the payment industry access to its technology, Apple already faced the possibility of a large fine.

The complaint claims that whereas Android-based rivals charge nothing, Apple charges issuers a 0.15 percent fee on credit transactions and a flat 0.5 cent price on debit purchases when using Apple Pay.

The plaintiff represents the legal offices of Sperling and Slater and Hagens Berman Sobol Shapiro.

They assisted in the $100 million settlement for smaller iOS developers last August, who claimed Apple overcharged them for commissions.

Apple stated it couldn’t allow access to NFC for security reasons, according to Margrethe Vestager, the head of the European Union’s digital policy, who was speaking about the investigation into Apple’s mobile payment practices in May.

Near Field Communication, sometimes known as NFC, is the wireless technology that powers the majority of mobile payments performed in stores in Europe.

This feature allows customers to “tap and go” by permitting communication between their mobile devices and the payment terminal at the store.

Like Apple, Google is in a Lawsuit of its own

Also scheduled for the trial are claims that Google overcharged millions of app users in the UK.

Consumer advocate Liz Coll is bringing the lawsuit on behalf of the over 20 million British Play Store customers. Her goal is to reimburse UK Android smartphone and tablet customers for alleged overcharging by Google and competition law violations over a number of years.

Google vowed to refute the assertion.

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