Payment card issuers filed a proposed class action lawsuit against Apple Inc. on Monday, alleging that the iPhone manufacturer used its dominance in the mobile device industry to stifle competition for its Apple Pay mobile wallet.
In contrast to manufacturers of Android-based devices, which allow customers to select wallets like Google Pay and Samsung Pay, Apple “coerces” consumers who use its smartphones, smartwatches, and tablets into using its own wallet for contactless payments.
Apple’s anticompetitive behaviour, according to the plaintiff, Iowa’s Affinity Credit Union, requires the more than 4,000 banks and credit unions who utilise Apple Pay to pay at least $1 billion in additional fees each year for the privilege.
It also claimed that Apple’s actions reduce the company’s incentive to improve Apple Pay’s functionality and make it more secure. Apple is situated in Cupertino, California. Apple’s conduct harms not only issuers, but also consumers and competition as a whole,” the complaint said
Apple did not immediately respond to requests for comment.