Judge Certifies Class Action Against Apple Over Apple Pay Fees
U.S. District Judge Jeffrey S. White certified a class action accusing Apple of charging card issuers inflated Apple Pay fees, in violation of federal antitrust law.
A federal judge has certified a class-action lawsuit accusing Apple of charging payment card issuers inflated fees for Apple Pay transactions, according to court records. U.S. District Judge Jeffrey S. White granted class certification, allowing the case to proceed on behalf of U.S. entities that issued payment cards enabled for Apple Pay and paid Apple fees on those transactions.
The plaintiffs, represented by law firm Hagens Berman, allege that Apple charges U.S. issuers 0.15% on credit card transactions and 0.5 cents on debit card transactions made through Apple Pay. By contrast, mobile wallets on Android do not charge card issuers transaction fees, the firm said.
The lawsuit accuses Apple of extracting up to $1 billion annually in fees in violation of federal antitrust law. It also claims Apple denies rivals access to technology needed to develop a competing mobile wallet, and that on iOS devices only Apple Pay can make contactless payments at the point of sale.
Judge White denied Apple's motion to exclude expert testimony, a setback for the company as the case moves forward. The lawsuit seeks reimbursement for card issuers that paid Apple Pay fees and an injunction against Apple's challenged policies.
Quick answers
What is the Apple Pay lawsuit about?
The lawsuit accuses Apple of charging payment card issuers inflated fees for Apple Pay transactions and of violating federal antitrust law by denying rivals access to mobile wallet technology.
Who is included in the certified class?
The class includes U.S. entities that issued payment cards enabled for Apple Pay and paid Apple fees on transactions.
What fees does Apple charge issuers?
According to the plaintiffs, Apple charges U.S. issuers 0.15% on credit card transactions and 0.5 cents on debit card transactions made through Apple Pay.