US District Judge Jeffrey White has granted class-action status to a lawsuit filed by banks and credit unions against Apple. The plaintiffs allege that Apple maintains a monopoly in the mobile wallet market by restricting access to the iPhone NFC chip and imposing fees on issuers for transactions made via Apple Pay.
The fee structure for card issuers includes a 0.15% charge for credit card transactions and 0.5 cents per debit card transaction. For a $1,000 purchase, Apple collects $1.50. Estimates suggest that these fees generate up to $1 billion in annual revenue for the company. The lawsuit claims that Apple forces issuers to pay by making Apple Pay the only option for contactless payments on iPhone.
Apple previously attempted to exclude expert testimony regarding its alleged monopoly power, but the judge denied this motion. The plaintiffs are seeking to recover fees paid by financial institutions and are requesting an injunction to end Apple's current policies. The case will now proceed to examine whether Apple's practices constitute illegal monopolization.
Following the initiation of the lawsuit, Apple updated its policies. Starting with iOS 18.1, developers can access the NFC chip for contactless payments within their own apps. This functionality is being rolled out in several regions, including the United States, Canada, the United Kingdom, and the European Economic Area.
