A U.S. District Court has certified a class action lawsuit against Apple, clearing the way for banks and credit unions to collectively sue the technology company over its mobile payment practices.
According to the filing, U.S. District Judge Jeffrey White certified a class that includes any U.S. entity that issued a payment card enabled for Apple Pay and paid Apple fees for Apple Pay transactions. The judge also denied Apple’s motion to exclude expert testimony regarding Apple’s alleged monopoly power over the mobile wallet market.
The lawsuit, originally filed in 2022, alleges that Apple illegally collects up to $1 billion annually by restricting access to the iPhone’s NFC chip, preventing competitors from building mobile wallets that could compete with Apple Pay. The suit specifies Apple’s fee structure: 0.15 percent for credit card transactions and half a cent for debit card transactions. According to the complaint, on a $1,000 purchase via Apple Pay, Apple would collect $1.50 from the card issuer.
Plaintiff attorneys argue that Apple forces card issuers to pay fees by making Apple Pay the only tap-to-pay option available to iPhone users. The complaint points to Google’s Android platform, which supports multiple mobile wallets without charging card issuers fees for contactless payments. The suit contends that Apple would be unable to maintain “substantial fees” if forced to support competing mobile wallets on its devices.
Apple has made some policy changes since the lawsuit was filed. Beginning with iOS 18.1, developers can offer NFC contactless payments through their applications. According to the source, developers now have access to the NFC chip in the United States, Canada, Australia, Brazil, Japan, New Zealand, the UK, the European Economic Area, and numerous other countries.
The attorneys pursuing the case are seeking repayment of fees paid by card issuers and injunctive relief to halt Apple’s current policies regarding mobile payment access.
Key facts
- A federal judge certified a class action allowing U.S. financial institutions to sue Apple collectively over mobile payment fees
- Apple allegedly collects up to $1 billion annually by restricting NFC chip access and charging card issuers 0.15% for credit transactions and 0.5 cents for debit transactions
- The lawsuit claims Apple forces card issuers to pay by making Apple Pay the only tap-to-pay option on iPhones
- Apple has granted NFC chip access to developers in iOS 18.1 across multiple countries
- The original lawsuit was filed in 2022; plaintiffs seek fee repayment and injunctive relief