Apple is currently facing a major legal challenge in the UK, as reported by The Guardian. Financial campaigner James Daley, founder of the advocacy group Fairer Finance, has officially launched a £1.5 billion class action lawsuit against the tech giant. The claim alleges that Apple has abused its market dominance by restricting competition for its mobile wallet and imposing hidden fees that have ultimately impacted millions of UK consumers.
The lawsuit, filed with the Competition Appeal Tribunal (CAT), argues that Apple’s control over the iPhone’s Near-Field Communication (NFC) chip has stifled competition for over a decade. By preventing other payment providers from accessing this technology, the suit claims Apple created a monopoly on contactless payments for iOS users in Britain.
For years, Apple Pay has been the only contactless payment service available to iPhone users. The lawsuit alleges that this lack of choice allowed Apple to charge banks and card issuers fees that are not in line with industry practice. While users don’t see a direct Apple Pay fee on their bank statements, the legal team argues these costs are very real.
The lawsuit seeks to represent roughly 50 million UK consumers. Interestingly, the legal team argues that the harm isn’t limited to iPhone owners. Because banks reportedly pass these “hidden” costs across their entire customer base, the lawsuit suggests that anyone with a UK current account, credit card, or mortgage could be paying the price. It is estimated that 98% of UK consumers are with banks that offer Apple Pay, making the potential reach of this case nearly universal across the country. If successful, affected consumers could see a payout of approximately £26 to £35.
Apple has hit back at the lawsuit, labeling it “misguided” and calling for it to be dismissed. The company maintains that Apple Pay is a “seamless and secure” solution that offers significant benefits to the financial industry, particularly in fraud reduction. While Apple has recently begun opening its NFC tech to third parties following pressure in the EU and elsewhere, the lawsuit focuses on the alleged damage caused over the past decade of restricted access.
What do you think about the Apple Pay ecosystem? Do you value the security and integration enough to overlook the lack of competition, or is it time for more wallet options on the iPhone? Let us know in the comments below! Stay updated with the latest news on this by downloading the Appleosophy App from the App Store or by visiting our website.
