Image Source: Apple
Regarding Apple Pay, the company is facing legal action in the US. The technology giant is charged with utilizing its dominant position in the mobile phone market to ward off competition from other payment card providers.
Affinity Credit Union, an Iowa-based chartered credit union, filed the class-action lawsuit in a federal court in California.
The complaint claims that unlike manufacturers of Android-based devices, who allow customers to select wallets like Google Pay and Samsung Pay, Apple “coerces” consumers who use its smartphones, smartwatches, and tablets into using its wallet for contactless payments.
According to the complaint, Apple forbids customers from utilizing rival mobile wallets that could provide rival tap and pay options.
According to Iowa’s Affinity Credit Union, Apple’s anti-competitive behavior made the more than 4,000 banks and credit unions who utilize Apple Spend pay at least $1 billion extra in excess fees each year for the privilege.
It also claimed that Apple’s actions reduced the company’s motivation to improve Apple Pay’s functionality and make it more secure.
An end to Apple’s claimed anti-competitive behavior is also demanded, in addition to specific financial compensation.
Various Court Cases Apple is in
Apple announced on Monday that it would pay a $50 million settlement to resolve a class-action lawsuit over so-called butterfly keyboards, a feature of some MacBook notebooks that drove many users insane with key-slamming displeasure.
Instead of being as fluid as the nectar-seeking creature’s flapping wings, the butterfly keyboard, a tiny design that sought to deliver better precision, fell short. When characters were pressed, many consumers reported that they appeared twice or never appeared at all. Several users said the devices’ keys were sticky and exhibited inconsistent responses.
After four years of litigation in the San Jose Division of the U.S. District Court in the Northern District of California, a class-action lawsuit based on the typing meltdowns was filed in 2018. This case served as the impetus for the settlement that was filed on Monday night. According to Apple, the deal did not amount to an admission of guilt.
Apple is already at risk of paying a large fine after European Union regulators stated on May 2 that the company had abused its control over iOS devices and mobile wallets by denying competitors in the payment industry access to its technology.
In contrast to competitors utilizing Android, Apple charges issuers a fixed 0.5% fee on credit transactions and a 1.5% cost on debit transactions when using Apple Pay, claims the complaint.
Plaintiff is represented by Hagens Berman Sobol Shapiro and Sperling and Slater.
For smaller iOS developers who alleged Apple overcharged them on fees, they assisted in securing a $100 million settlement in August.
Margrethe Vestager, the head of the EU’s digital policy, stated in May that the investigation into Apple’s mobile payment practices was prompted by the company’s assertion that NFC access was not possible due to security concerns.
Near Field Communication, or NFC is a wireless technology that is used most often in Europe for mobile phone payments made in stores.
This feature allows customers’ mobile phones and the store’s payment terminal to communicate, enabling “tap and go.”
Google is in a Fix Similar to that of Apple
In the UK, a trial is also scheduled on claims that Google overcharged millions of app users.
Consumer advocate Liz Coll filed the lawsuit on behalf of the nearly 20 million British Play Store users.
Her goal is to make up for alleged overcharging by Google and violations of competition law on Android smartphones and tablets used in the UK over the years.
The claim would be defended, according to Google.