James Daley, a financial campaigner and the founder of Fairer Finance, has initiated a GBP 1.5 billion class action lawsuit against Apple for alleged anti-competitive practices related to its mobile phone wallet.
According to Daley, Apple’s actions have led to hidden fees being charged that have affected approximately 50 million UK consumers. The lawsuit specifically targets Apple Pay and accuses the company of monopolizing contactless payment services for iPhone users in the United Kingdom over a decade-long period.
Daley’s Allegations Against Apple
Daley argues that Apple’s actions have promoted anti-competitive behavior, enabling it to impose hidden fees which ultimately increased costs for banks and subsequently passed onto consumers. Even those who do not own an iPhone have reportedly incurred additional charges due to this practice.
The case has been submitted to the Competition Appeal Tribunal, where its validity will be determined. Daley contends that UK individuals are unaware of paying extra for their everyday banking transactions because of Apple’s operations. He further stated that by restricting competition and levying hidden fees, Apple has increased expenses for millions of consumers without them necessarily owning an iPhone.
Apple’s Response
In reaction to this lawsuit, Apple maintained that the case is unfounded and should be rejected. The company highlighted that Apple Pay offers secure contactless payments and provides one of the payment options available to customers. Apple noted that it does not charge fees directly to consumers or merchants for using the mobile wallet service, and instead, banks benefit from offering this service to their users.
Additionally, Daley’s lawsuit claims that Apple blocked access to contactless payment technology on iPhones by other app developers and external businesses. This exclusivity enabled Apple to charge fees to banks and card issuers for transactions processed through Apple Pay that were deemed excessive and not in accordance with industry standards. The complaint points out that similar fees are not imposed on Android devices, which are developed by Google.
