Apple sued over iPhone’s tap-to-pay feature

A class-action lawsuit is being filed against Apple Pay for allegedly having an illegal monopoly over contactless payments on iPhones which pushes card issuers to pay a certain fee.

The lawsuit was filed by Affinity Credit Union, which hopes to turn it into a class-action so that more companies can side with it against Apple.

The Verge reported that the company makes over $1 billion a year by charging credit card companies 0.15 per cent per transaction in ApplePay fees. The companies don't have to pay anything when their customers use Android wallets, which are pretty much identical in function.

The case accuses Apple of violating antitrust law by ensuring the company remains the sole provider for NFC payment iPhones, iPads, and Apple Watches. This compels iPhone users to use Apple Pay without any other cheaper alternative. Previously, the Apple Vs Epic Games lawsuit revolved around a similar antitrust issue regarding Apple Pay’s monopoly on iOS devices which restricts third-party app developers from the NFC system.

According to a press release, the lawsuit aims to change Apple policies that compel all contactless payments to go through Apple Pay and to reimburse card issuer companies with the fees that they have illegally charged.

The EU has also recently objected to iPhone’s NFC system where third-party developers cant use the method due to restrictions that lead to “less innovation and less choice for consumers for mobile wallets on iPhones.”