Thousands Of CUs, Banks Cleared To Pursue Apple Pay Fee Claims As A Class
By CU Today Staff —
SAN FRANCISCO--Thousands of U.S. credit unions and banks can jointly pursue antitrust claims against Apple over fees charged for Apple Pay transactions after a federal judge certified the case as a class action, according to AppleInsider.
AppleInsider reported U.S. District Judge Jeffrey White certified the class Sept. 23, allowing U.S. financial institutions that issued an Apple Pay-enabled card and paid Apple a transaction fee to pursue their claims together. The lawsuit, filed in 2022 by Affinity Credit Union, GreenState Credit Union and Consumers Co-op Credit Union, alleges Apple restricted competing mobile wallets from accessing the iPhone’s contactless-payment technology, enabling it to impose fees that competitors did not charge issuers.
According to AppleInsider, issuers pay Apple 0.15% of the value of credit card purchases made through Apple Pay and half a cent for each debit transaction. The credit unions contend those fees were inflated because Apple Pay faced no meaningful competition for tap-to-pay transactions on iPhones. White found that common questions—including whether Apple possessed monopoly power, harmed competition and caused financial injury to issuers—could be addressed for the class as a whole. The ruling does not determine whether Apple violated antitrust law or owes damages.
AppleInsider reported White also rejected Apple’s attempt to exclude plaintiffs’ damages expert Christopher Vellturo, who calculated potential damages by comparing the fees issuers paid Apple with the zero transaction fees he said competing mobile wallets charge issuers, using the difference to estimate how much class members may have overpaid.
Originally reported by CU Today.