Apple is confronted with a class-action lawsuit accusing the company of engaging in anti-competitive behavior in the iOS peer-to-peer payments market. The complaint alleges that Apple conspired with PayPal's Venmo and Block's Cash App to limit decentralized cryptocurrency technology in payment apps, resulting in inflated prices for users. The plaintiffs claim that Apple uses technological and contractual restraints, including App Store exclusivity, to exert control over iOS P2P payment apps and restrict competition. The lawsuit seeks recovery for excessive fees and injunctive relief against Apple's alleged anti-competitive practices.
Apple is facing a class-action lawsuit that accuses the tech giant of engaging in anti-competitive conduct in the iOS peer-to-peer payments market. The lawsuit, filed by disgruntled consumers in a California District Court on November 17, alleges that Apple conspired with PayPal's Venmo and Block's Cash App to limit the use of decentralized cryptocurrency technology in payment apps, leading to inflated prices for users.
According to the complaint, Apple entered into anti-competitive agreements with Venmo and Cash App, restricting the incorporation of decentralized cryptocurrency technology within iOS peer-to-peer payment apps. The plaintiffs argue that these agreements hinder feature and price competition marketwide. The filing also claims that Apple employs technological and contractual restraints, including hardware-enforced App Store exclusivity and limitations on web browser technology, to exert control over every app installed on iPhones and iPads.
The lawsuit contends that Apple uses these restraints to force new iOS peer-to-peer payment apps to exclude cryptocurrency as a condition for entry into the App Store. The plaintiffs, described as customers who paid inflated fees due to Apple's alleged anti-competitive conduct, seek to recover damages for excessive fees and overcharging. Additionally, they request injunctive relief to prevent Apple from continuing to enter into and enforce anti-competitive agreements that restrain competitors and potential entrants in the iOS peer-to-peer payment market.
The 58-page filing provides a comprehensive overview of the history of peer-to-peer payment apps, the rise of decentralized cryptocurrencies, and Apple's entry into the market. The lawsuit follows a previous ruling by the United States Court of Appeals for the Ninth Circuit in April, which found Apple in violation of California's competition laws for not allowing apps to direct users to non-Apple-linked payment solutions.
(MARTIN YOUNG, COINTELEGRAPH, 2023)