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Apple sued for anti-competitive mobile wallet practices, cryptocurrency restrictions

Apple is under fire for alleged collusion with mobile wallet service providers to stifle competition and force users to pay high transaction fees over peer-to-peer payments. The company is now the subject of a class-action lawsuit brought forward by four consumers in a California court (via Reuters).

The lawsuit was filed by four Venmo and Cash App users from New York, Hawaii, South Carolina, and Georgia. The plaintiffs allege that Apple has breached antitrust laws in the United States by colluding with Venmo’s and Cash App’s parent companies, PayPal and Block, to limit and curb competition in the mobile peer-to-peer money transfer market.

By limiting competitors from operating freely in the mobile wallet industry in what is referred to in the lawsuit as “mirroring agreements,” users are forced to pay “rapidly inflating prices” in the form of high transaction fees between the limited number of mobile wallet providers. The lawsuit also alleges that Cupertino company among other mobile wallet providers “have continuously raised transaction and service fees” without being challenged by any new competitors that could provide lower fees due to the companies’ anti-competitive agreements.

The legal action is also targeting Apple’s apparent limiting of “decentralized cryptocurrency technology” for existing or new mobile wallet providers on the iPhone and the App Store. Besides allowing crypto wallets to exist more freely on Apple’s mobile platforms, the lawsuit is also seeking a decision that would require the company to “segregate or divest” its Apple Cash mobile wallet business. The plaintiffs are also seeking monetary compensation for damages resulting from the inflated fees used in Venmo and Cash App transactions.

Elsewhere, the company is also facing increased pressure from the Australian government which would like to pass a regulation placing Apple Pay under greater oversight and control from Australia’s central bank. The draft law would treat digital wallets like Apple Pay and Google Play as conventional financial products like physical credit cards, which would make Apple directly subject to greater financial regulation and scrutiny in Australia.

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Omar Moharram

Omar Moharram

Omar is Senior Editor at Supercharged and an Apple devotee since his early teens. He graduated with a computer engineering degree in 2022, which aids him in his technical content writing. Outside of work, he can often be found critiquing music or a film, or tinkering with a bass.

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Apple sued for anti-competitive mobile wallet practices, cryptocurrency restrictions

Apple is under fire for alleged collusion with mobile wallet service providers to stifle competition and force users to pay high transaction fees over peer-to-peer payments. The company is now the subject of a class-action lawsuit brought forward by four consumers in a California court (via Reuters).

The lawsuit was filed by four Venmo and Cash App users from New York, Hawaii, South Carolina, and Georgia. The plaintiffs allege that Apple has breached antitrust laws in the United States by colluding with Venmo’s and Cash App’s parent companies, PayPal and Block, to limit and curb competition in the mobile peer-to-peer money transfer market.

By limiting competitors from operating freely in the mobile wallet industry in what is referred to in the lawsuit as “mirroring agreements,” users are forced to pay “rapidly inflating prices” in the form of high transaction fees between the limited number of mobile wallet providers. The lawsuit also alleges that Cupertino company among other mobile wallet providers “have continuously raised transaction and service fees” without being challenged by any new competitors that could provide lower fees due to the companies’ anti-competitive agreements.

The legal action is also targeting Apple’s apparent limiting of “decentralized cryptocurrency technology” for existing or new mobile wallet providers on the iPhone and the App Store. Besides allowing crypto wallets to exist more freely on Apple’s mobile platforms, the lawsuit is also seeking a decision that would require the company to “segregate or divest” its Apple Cash mobile wallet business. The plaintiffs are also seeking monetary compensation for damages resulting from the inflated fees used in Venmo and Cash App transactions.

Elsewhere, the company is also facing increased pressure from the Australian government which would like to pass a regulation placing Apple Pay under greater oversight and control from Australia’s central bank. The draft law would treat digital wallets like Apple Pay and Google Play as conventional financial products like physical credit cards, which would make Apple directly subject to greater financial regulation and scrutiny in Australia.

TOPICS: ,
Share this Article

Supercharged is not just another news outlet. We’re a platform on a mission to offer personalized and ad-free news directly to you. Discover more of Supercharged.

note icon

Did you know?

Easily add Supercharged to your Home Screen and stay informed on the go! Get instant updates and breaking news stories via push notifications directly on your iPhone and Apple Watch. Just tap the share icon, then "Add to Home Screen," and be the first to know.

Omar Moharram

Omar Moharram

Omar is Senior Editor at Supercharged and an Apple devotee since his early teens. He graduated with a computer engineering degree in 2022, which aids him in his technical content writing. Outside of work, he can often be found critiquing music or a film, or tinkering with a bass.

Read More

note icon

Did you know?

Easily add Supercharged to your Home Screen and stay informed on the go! Get instant updates and breaking news stories via push notifications directly on your iPhone and Apple Watch. Just tap the share icon, then "Add to Home Screen," and be the first to know.

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