A class action suit has been proposed against Apple Pay for holding illegal monopoly over contactless payments on iPhone and forcing card issuers to pay the fees. Apple makes over $1 billion a year by charging credit card companies up to 0.15% per transaction. This fee is nil for ‘functionally identical Android wallets.’ The suit alleges that Apple has violated the anti-trust law by making it so that only Apple Pay can carry out NFC payments on iPhones, iPads, and Apple Watches. While Android users can look for other options for contactless mobile wallets, iOS users can only use tap-to-pay technology through Apple Pay.
The suit is being started by Iowa-based Affinity Credit Union, but the company’s lawyers hope to make it into a class action case so other card issuers can join the lawsuit. Apple is facing a similar challenge in the EU for its contactless payment system, where it has been accused for illegally blocking third-party developers from enabling the payment technology.
