Jul 19, 2022
Apple sued over Apple Pay payment system
Apple has been hit with a lawsuit in the US over Apple Pay.The tech giant is being accused of using its market power in the mobile phone industry to fend off competition from other payment card issuers. According to the complaint, Apple "Coerces" consumers who use its smartphones, smart watches and tablets into using its own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets, such as Google Pay and Samsung Pay.The complaint alleges that Apple prevents consumers from using competing mobile wallets capable of offering competing tap and pay solutions. Iowa's Affinity Credit Union said Apple's anti-competitive conduct forced the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion in excess fees annually for the privilege. 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. In discussing the European Union's probe of Apple's mobile payment policies in May, the bloc's digital chief Margrethe Vestager said Apple claimed it couldn't provide access to NFC for security reasons.
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