A group of unhappy customers has initiated a class-action lawsuit against Apple. They accuse the tech giant of conspiring to restrict peer-to-peer (P2P) payment options on its devices and deliberately blocking the integration of cryptocurrency technology in iOS payment applications.
According to the lawsuit filed on November 17 in a District Court in California, Apple is alleged to have formed anti-competitive agreements with PayPal’s Venmo and Block’s Cash App. These agreements supposedly limit the use of decentralized cryptocurrency technology in payment apps, leading to increased prices for users.
The lawsuit states, “These agreements stifle competition in features—and the resulting price competition—across the market by preventing the integration of decentralized cryptocurrency technology in both existing and new iOS Peer-to-Peer Payment apps.”
The plaintiffs further allege that Apple imposes “technological and contractual restrictions,” including mandatory App Store exclusivity enforced by hardware and “limitations on web browser technology.” These measures allegedly allow Apple to maintain absolute control over every application installed and operated on iPhones and iPads.
According to the lawsuit, these restrictions enable Apple to compel emerging iOS P2P payment applications to exclude cryptocurrency options as a prerequisite for market entry. The plaintiffs, identifying themselves as customers who have paid higher fees due to Apple’s trade restrictions in the iOS P2P payment market, are seeking compensation for these excessive charges. They argue that these charges are a result of Apple’s purported anti-competitive behavior. Additionally, they are seeking injunctive relief to prevent Apple from continuing to form and enforce anti-competitive agreements that restrain competitors and potential new entrants in the iOS P2P payment market.
The 58-page legal document elaborates on the evolution and growth of peer-to-peer payment applications, decentralized cryptocurrencies, and Apple’s involvement in this market.
This lawsuit follows a ruling in April by the United States Court of Appeals for the Ninth Circuit. The court found that Apple had breached California’s competition laws by not allowing applications to direct users to payment solutions outside of Apple’s ecosystem.
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