Apple Prosecuted by Affinity Credit Union for Anti-Competitive Behaviour via Apple Pay

US-based not-for-profit company Affinity Credit Union has filed an official complaint against tech giant Apple for illegally profiting from Apple Pay and breaking antitrust laws.

The lawsuit alleges that Apple has restricted contactless payments on iOS devices to Apple Pay and charged payment card issuers fees to use the mobile wallet, engaging in anti-competitive behaviour.

Android users have several options for contactless mobile wallets, while iOS users are restricted to using only the tap-to-pay tech provided by Apple Pay. And, while iPhone and iPad users can download the Google Pay app on their smart devices, they can’t use it as a payment method to make contactless payments in stores. 

Additionally, Android does not charge payment card issuers any fees on any of its supported mobile wallets. Meanwhile, Apple Pay will charge card issuers a 0,15% fee on credit transactions and 0,5% for all debit transactions, which led to over USD 1 billion in extra revenues per year, according to the lawsuit.

Apple is facing similar accusations over its payment system in the EU as well, where an antitrust commission said, back in May 2022, that the tech company is illegally blocking third-party developers from enabling contactless payments on iOS devices.

(Source: The Paypers)