Apple is facing a class-action lawsuit alleging that the tech giant conspired to limit peer-to-peer payment options on its devices and blocked the integration of crypto technology into iOS payment apps.
The lawsuit, filed Nov. 17 in California District Court, accuses Apple of conspiring with major payment platforms like PayPal’s Venmo and Block’s Cash App to limit the use of decentralized cryptocurrency technology in iOS payment apps. .
According to the complaint, these agreements have led to a lack of competition in features and prices in the market, particularly by preventing the integration of decentralized cryptocurrency technology into new and existing iOS Peer-to-Peer (P2P) payment applications.
The plaintiffs argue that this has resulted in consumers paying inflated prices due to Apple’s control over the iOS P2P payments market.
The presentation highlights Apple’s use of both technological and contractual measures to maintain tight control over the applications available on its devices. These measures include hardware-enforced App Store exclusivity and restrictions on web browser technology, which the plaintiffs allege allow Apple to dictate the terms for new iOS P2P payment apps, often excluding cryptographic options. as a condition for entering the market.
The plaintiffs identify themselves as consumers who have incurred higher fees as a result of Apple’s business restrictions in the iOS peer-to-peer payments sector.
They seek compensation for excessive charges they attribute to Apple’s alleged anti-competitive behavior, and are also seeking a court order preventing the company from entering into and enforcing agreements that limit competition in the iOS P2P payments market, affecting both existing competitors and possible new entrants.
The 58-page presentation chronicles the development and rise of peer-to-peer payment applications, the rise of decentralized cryptocurrencies, and Apple’s introduction into this sector.
Significantly, in April, the Ninth Circuit Court of Appeals found that Apple violated California competition laws by preventing apps from directing users to payment solutions outside of Apple’s own system.
Crypto apps fight to stay in the Apple store
Apple policies require app developers to contribute 30% of the revenue from their transactions.
This requirement has posed a challenge for cryptocurrency companies, especially those involved in offering non-fungible tokens (NFTs) in their efforts to serve iOS users.
Apple also reportedly removed Damus, a social media app that supports Bitcoin, from the App Store for failing to comply with its terms of service.
The app features a tipping option, allowing content creators to earn tips in Bitcoin via the Lightning Network.
Apple considered this tipping feature to be in violation of its policies as it prohibits developers from offering additional content in the app unless such transactions are made through Apple, from which the company charges a 30% fee.
In early October, the popular Ethereum wallet MetaMask also experienced a brief removal from the Apple App Store, only to be reinstated later.
