The Iowa Affinity Credit Union is suing Apple for what it claims is anti-competitive behavior in the way it operates Apple Pay. This could turn into a class action lawsuit and looks like a charge in the EU last year.
The charge is this – Apple “forces” owners of their phones, tablets and watches to use Apple Pay and prevents other payment services from competing on their platforms. This has led to 4,000 banks and credit unions in the United States using Apple Pay and paying at least $ 1 billion in excess fees each year.
Apple charges a 0.15% fee on credit transactions and a fixed fee of 0.5 cents on debit transactions. The rival services on Android charge nothing.
It’s not just about the money. According to the lawsuit, the lack of competition removes the incentive for Apple to improve Pay and make it more secure. This means that both Apple users and payment card issuers working with Pay are affected.
The lawsuit seeks triple damages and an end to Apple’s anti-competitive conduct. Presumably, this will require Apple’s hardware to be opened to the full mobile payment options for third-party payment services.