Affinity Credit Union lawsuit accuses Apple of antitrust violations over Apple Pay

Apple on Monday was hit with a lawsuit in a proposed class action by payment card issuers accusing the company of abusing its market power in smartphones to inhibit competition for its Apple Pay service.

Jonathan Stempel for Reuters:

According to a complaint filed in San Francisco federal court, Apple “coerces” consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments…
The plaintiff, Iowa’s Affinity Credit Union, said Apple’s anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege.
The lawsuit seeks unspecified triple damages, and a halt to Apple’s alleged anticompetitive conduct.
According to the complaint, Apple charges issuers a 0.15% fee on credit transactions and a flat 0.5 cent fee on debit transactions using Apple Pay, while Android-based rivals charge nothing.

MacDailyNews Take: No one is forced to use Apple Pay, nor is anyone forced to use an iPhone.
Apple does not have a monopoly position in smartphones.
Mobile Operating System Market Share Worldwide (StatCounter, June 2022):
• Android: 72.12%
• iOS: 27.22%
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