The Iowa Affinity Credit Union is suing Apple for what it claims is anti-competitive conduct in the way it handles Apple Pay. This could turn into a collective action and is similar to an indictment in the EU last year.
The charge is this: Apple “forces” the owners of its phones, tablets and watches to use Apple Pay and prevents other payment services from competing on its platforms. This has resulted in 4,000 banks and credit unions in the United States using Apple Pay and paying at least $ 1 billion in excess fees each year.
Apple charges a 0.15% credit transaction fee and a flat 0.5 cent debit transaction fee. Rival services on Android charge nothing.
It’s not just about the money. According to the lawsuit, the lack of competition removes the incentive for Apple to improve Pay and make it more secure. This means that both Apple users and payment card issuers who work with Pay are affected.
The lawsuit asks for triple damages and an end to Apple’s anti-competitive behavior. Presumably, this will require opening all of Apple’s hardware mobile payment capabilities to third-party payment services.
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