Do you issue payment cards enabled for use in Apple Pay? Apple may violate federal antitrust laws via the fees you pay and other anticompetitive policies. Fill out the form to find out your rights to potential compensation »
WHAT’S THE ISSUE?
Hagens Berman’s antitrust legal team has revealed what it believes to be highly anticompetitive practices under Apple Pay policies. The firm has filed a class-action lawsuit accusing Apple of intentionally monopolizing the billion-dollar mobile wallet market on iOS platforms, forcing payment card issuers to pay supracompetitive fees and stifling mobile wallet innovation.
Payment card issuers may have rights to reimbursement for fees and other damages, and if you believe your business was harmed, fill out the form regarding this lawsuit to learn more.
HOW DOES APPLE PAY FUNCTION DIFFERENTLY THAN OTHER MOBILE WALLETS?
Apple already dominates the smartphone, tablet and smart watch device markets, and has also sought to use its market power in the mobile wallet market. Mobile wallets allow users to make “tap-and-pay” payments by holding their smart device near a merchant’s payments terminal. Unlike other digital wallets available on Android devices – Google Pay and Samsung Pay, among other providers – Apple requires that consumers of its mobile devices also use its mobile wallet, Apple Pay, to the exclusion of all competitors offering nearly identical services.
On Android’s platform, the decades-old technology that allows for tap-and-pay is available across payment providers and device manufacturers.
On all of Apple’s iOS devices, Apple’s own proprietary service is the only option. This is not because Apple made a better product, but because Apple chooses to block competition against Apple Pay. Payment card issuers – those who provide credit cards, debit cards, prepaid cards, transit cards, and any other cards linked to a depository account – face the brunt of Apple’s anticompetitive behavior.
APPLE PAY’S ANTICOMPETITIVE POLICIES
With tap-and-pay competition barred on iOS devices, Apple charges payment card issuers fees that no other mobile wallets impose and imposes other stifling policies onto payment card issuers:
- Whenever an Apple Pay transaction is completed on a U.S. issuer’s card, the issuer must pay Apple a fee – 15 basis points on credit and .5 cents on debit. These fees reportedly generate Apple $1 billion annually, and this same service on Android wallets costs payment card issuers $0. This revenue stream – earned entirely on the backs of issuers – is predicted to quadruple by 2023.
- Apple has further cemented its market power by preventing issuers from passing on Apple Pay’s fees.
YOUR RIGHTS AS A PAYMENT CARD ISSUER
Hagens Berman’s lawsuit seeks to recover losses payment card issuers may have suffered due to the anticompetitive policies and practices within Apple Pay. Our law firm believes in keeping marketplaces free and fair, and we believe Apple’s practices violate federal antitrust laws in two ways:
- Apple has unlawfully tied two of its products together – its mobile devices and its mobile wallet – by compelling iOS users to use its mobile wallet product exclusively and foreclosing rival iOS tap-and-pay solutions.
- Apple unlawfully monopolizes the market for tap-and-pay mobile wallets on iOS. While issuers pay $0 when their cardholders use Android wallets and pay $0 when their cardholders use contactless cards, Apple rakes in billions of dollars from fees from tap-and-pay payments on its platform.
If these anticompetitive practices did not exist, innovation would improve transaction security and other aspects of mobile wallet technology. The number of cardholders would increase due to lower fees, and more merchants would accept those cards, allowing transactions to also increase. We believe Apple’s behavior has a significant negative impact on this market, on businesses and on consumers.
HOW CAN A CLASS ACTION HELP?
A class-action lawsuit can seek repayment for payment card issuers for related losses due to Apple’s potential antitrust violations, including fees and other potential damages. Class members may have other claims against Apple for its intentionally anticompetitive behavior that has harmed the market and has likely been motivated by greed and profit. The lawsuit also seeks injunctive relief ending Apple Pay’s harmful practices.
TOP ANTITRUST LAW FIRM
Hagens Berman is one of the most successful consumer litigation law firms in the U.S. and has achieved more than $320 billion in settlements for plaintiffs in lawsuits against Big Tech, retailers and others. The firm has secured major antitrust victories specifically against Apple, including a combined $560 million settlement against Apple and publishing companies regarding price-fixing of e-books, and in 2022, a $100 million settlement on behalf of iOS developers who were harmed by Apple’s stifling App Store policies. Your claim will be handled by attorneys experienced in antitrust law.
NO COST TO YOU
There is no cost or fee whatsoever involved in joining this lawsuit. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team. In no case will any class member ever be asked to pay any out-of-pocket sum.