In a legal development that could have far-reaching implications, disgruntled consumers have united to file a class-action lawsuit against tech giant Apple. The lawsuit, filed on November 17 in a California District Court, asserts that Apple engaged in anti-competitive practices, limiting peer-to-peer (P2P) payment options on its devices and obstructing the integration of cryptocurrency technology into iOS payments apps.
According to the 58-page complaint, Apple is accused of entering into anti-competitive agreements with prominent payment platforms, including PayPal’s Venmo and Block’s Cash App. These alleged agreements purportedly aimed at restricting the utilization of decentralized cryptocurrency technology in payment apps, resulting in users being subjected to “rapidly inflating prices.”
The plaintiffs argue that such agreements stifle both feature and price competition across the entire market, preventing the incorporation of decentralized cryptocurrency technology within iOS P2P payment apps. The complaint contends that Apple employs various tactics, such as hardware-enforced App Store exclusivity and contractual limitations on web browser technology, to exert complete control over every app installed and run on iPhones and iPads.
The lawsuit also claims that Apple compels new iOS P2P payment apps entering the market to exclude cryptocurrency as a prerequisite for entry. The disgruntled customers, who describe themselves as victims of inflated fees due to Apple’s alleged restraints, are seeking compensation for excessive charges and overcharging. Additionally, they are seeking injunctive relief to prevent Apple from entering into and enforcing anti-competitive agreements that restrict competition in the iOS P2P payment market.
The filing delves into the history and evolution of peer-to-peer payment apps, decentralized cryptocurrencies, and Apple’s foray into the market. It notes that in April, the United States Court of Appeals for the Ninth Circuit ruled that Apple violated California’s competition laws by prohibiting apps from directing users to non-Apple linked payment solutions.
As the legal battle unfolds, it raises questions about the balance between technological innovation, competition, and consumer choice in the rapidly evolving landscape of digital payments.
