Apple faces a class action lawsuit for alleged anti-competitive behavior in the iOS peer-to-peer payments market.
Dissatisfied customers have filed a class-action lawsuit against Apple, alleging that the company conspired to limit peer-to-peer payment options on its devices and to block crypto technology from iOS payments apps.
According to the complaint, which was filed in a California District Court on November 17, Apple entered into anti-competitive agreements with PayPal's Venmo and Block's Cash App to restrict the use of decentralized cryptocurrency technology in payment apps, causing users to pay "rapidly inflating prices."
"These agreements, for example, prohibit the use of decentralized cryptocurrency technology in newly developed or existing iOS peer-to-peer payment applications." the filing says.
Apple is also accused of using "technological and contractual restraints," such as hardware-enforced App Store exclusivity and "contractual limitations on web browser technology," to "exercise unfettered control over every app installed and run on iPhones and iPads," the plaintiffs claim.
With these constraints, Apple can — and does — force new iOS P2P payment apps to exclude crypto "as a condition for entry," according to the lawsuit.
The plaintiffs describe themselves as customers who have paid inflated fees as a result of Apple's trade restrictions in the iOS P2P payment market.
They seek restitution for excessive fees and overcharging caused by Apple's alleged anticompetitive behavior, as well as injunctive relief prohibiting the company from entering into and enforcing anticompetitive agreements restraining Competitors and would-be entrants in the iOS P2P Payment Market.
The 58-page class action recounts the history and rise of peer-to-peer payment apps and decentralized cryptocurrencies, as well as Apple's foray into the market.
The lawsuit against Apple for blocking crypto technology for peer-to-peer payments is a sign of the growing popularity of cryptocurrencies. As cryptocurrencies become more widely used, it is likely that we will see more lawsuits challenging Apple's App Store policies. The outcome of these lawsuits could have a significant impact on the future of cryptocurrencies.
It is important to note that Apple has not yet responded to the lawsuit, and the company may have valid reasons for its App Store policies. However, the lawsuit is sure to raise awareness of the issue of anti-competitive practices in the tech industry.