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Three credit unions are filing an antitrust lawsuit against Apple Pay for its alleged monopoly of the market. Part of their reasons for this case is that Apple charges too much for processing fees for others to make use of its payment services. Another reason is that the necessary hardware for this service to work is not accessible to other digital wallets.
This alleged monopoly makes it hard for people to switch from Apple to Android since they’ll lose their wallet access. Lots of other payment apps that work on both Apple and Android devices lack the payment convenience that Apple Pay brings. Additionally, Apple Pay is only available on Apple devices and not on Android devices, and this limits usage to only a certain group of people.
The Judge in charge of the antitrust hearing took the side that there is a possibility that Apple Pay is monopolized. This isn’t the first time that Apple Pay has come under consideration for its possible monopolization of the market. Apple has faced similar issues within the EU regions, but the case in question in this article will be tabled before a court in America.
The Apple Pay antitrust lawsuit might force the company to make some changes to its services
Once this antitrust lawsuit got to the court, Apple’s reaction was to request a dismissal from the court. However, the Judge in charge of the case didn’t grant Apple their wish, meaning the case would appear before the court. The plaintiff accuses Apple of practices that are harming the competition regarding Apple Pay services.
This payment service from Apple became available for users back in 2014, and it helps make payments easier. Well, one can rephrase the last sentence, saying that Apple Pay makes payment easier for Apple users. Others who do not make use of Apple devices can’t access this service, and this is harmful to businesses and individuals.
The plaintiff claims that Apple “coerces” users of their products to make payments using their in-house payment service. Also, businesses that make use of Apple Pay end up collectively paying $1 billion of excess fees. This is harmful to customers since these excess fees might result in a hike in prices for goods and services.
In its defense, Apple says that it charges nominal fees to all cardholders to keep costs down. They also argue that users of Apple Pay aren’t under any duress to use the payment platform. These users are free to make use of any other payment platforms or services that are convenient and more affordable to them.
Despite this, the Apple Pay antitrust lawsuit will still appear before the court in December. If all goes in favor of the plaintiff, Apple might need to make certain adjustments to their payment service, making it more accessible to all. It’s also good to note that the EU is also looking into Apple Pay and its possible monopolization.