Apple Inc. has been sued for antitrust violations related to Apple Pay, which is accused of abusing its bargaining leverage in the mobile device market by charging card issuers fees to increase revenues.
European regulators have tentatively concluded that Apple is abusing its dominating position in the market for one-touch payment apps or mobile wallets through Apple Pay.
EU considers charging fees to card issuers anti-competitive
By connecting its mobile devices and mobile wallet together and excluding all competitors, the European regulator believes Apple is breaking the Sherman Act, which is intended to protect competition.
According to the case filed in federal court in San Jose, California, “Apple can charge payment card issuers fees that no other mobile wallet dares to charge,” according to the case.
“In 2019, Apple Pay fees produced $1 billion for Apple, and this flow of funds received from card issuers is expected to treble by 2023.” According to Affinity Credit Union, if Apple faced competition, it would be unable to sustain such high rates.