Apple to face an antitrust lawsuit over iOS Apple Pay dominance

Apple’s request to dismiss a federal class action lawsuit alleging Apple Pay’s monopoly and dominance has been partially denied.

California Northern District Judge Jeffrey White ruled to support the case brought by three credit unions arguing that Apple charged too much in processing fees thus violating the Sherman Anti-Trust Act.

The unions also argued that Apple was being too monopolistic by not letting other digital wallets access its NFC-scanning hardware.

Judge Jeffrey White agreed with the credit unions’ argument that iOS tap-to-pay is a market serving itself as QR code payment apps lack Apple Pay’s convenience and functionality. The credit unions also alleged that Apple is leveraging its NFC reader detail to fend off competition.

Yet, Judge White agreed with Apple’s argument that Apple Pay was not unlawfully tied to Apple phones and gadgets as the service is free and the company doesn’t force people to use it.

Judge White agreed that Apple charges “arbitrary and inflated fees” for payment processing and that the lack of competition in the iOS digital payments market is harmful to consumers.

Apple and the credit unions will meet again in court on December 1st.

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