A lawsuit has been filed against Apple accusing the iPhone maker of “illegally profiting” from payment card issuers through its Apple Pay policies, allegedly taking up to $1 billion a year in fees in breach of federal anti-trust law.
The lawsuit, filed in California on Monday, also accuses Apple of denying rivals access to the technology needed to develop a competing mobile wallet.
It said Apple “unlawfully” linked two of its products — mobile devices and its proprietary mobile wallet — compelling users to exclusively use Apple Pay and foreclosing rival tap-and-pay options, law firms Hagens Berman and Sperling & Slater said in the suit.
While payment card issuers pay nothing when their cardholders use rival Android wallets and other contactless cards, “Apple rakes in billions of dollars from fees from tap-and-pay payments on its platform”.
Apple Pay, the Californian company’s mobile wallet solution on iPhones and iPads, enables payments in shops and online.
“When you compare the functionality of Apple Pay to mobile wallets available on Android devices — Google Pay, Samsung Pay — you’re essentially holding up a mirror … they are essentially identical,” Hagens Berman’s co-founder and managing partner Steve Berman said.
“And yet, the same service on Android that card issuers pay absolutely nothing for costs them a collective $1bn annually through Apple Pay.
“The reason for this is simple … there is competition on Android devices, with multiple wallets offering contactless payments, whereas Apple has barred all rivals, making Apple Pay the only option."
Whenever an Apple Pay transaction is completed on a US issuer’s card, the issuer must pay Apple a fee — 15 basis points on credit and 0.5 cents on debit, according to Hagens Berman.
These fees reportedly generate Apple $1bn a year, and this same service on Android wallets costs payment card issuers nothing.
This revenue stream is predicted to quadruple by next year, the law firm said.
There is competition on Android devices, with multiple wallets offering contactless payments, whereas Apple has barred all rivals, making Apple Pay the only option
Steve Berman,
Hagens Berman’s co-founder and managing partner
“On the surface, Apple Pay’s fees pushed on to card issuers may seem small, but truly the devil is in the details of Apple’s policies and these fees add up, big time,” Mr Berman said.
The lawsuit has sought Apple to reimburse payment card issuers who have been charged Apple Pay’s fees and demanded injunctive relief to end the company's policies.
In a similar case in May, the EU hit Apple with anti-trust charges for abusing its dominant position in the mobile wallets market by restricting competition.
The 27-nation bloc's executive arm, the European Commission, said Apple had restricted competition in the mobile wallets market by limiting third-party access to key technology necessary to develop rival mobile wallet solutions on its devices.
A mobile or digital wallet stores users’ credit and debit card information, and links it to a payment gateway to allow purchases at a point of sale.
As with credit cards, they only work at merchants that accept them.
Google was the first major company to launch a mobile wallet, in 2011. Today, consumers have a number of digital wallets to choose from, including Samsung Pay, PayPal and Apple Pay.
Consumer spending through digital wallets is expected to reach more than $10 trillion in 2025 — up from $5.5tn in 2020, a 2021 report by Juniper Research in the UK showed.
This is the third time Hagens Berman has sued the Cupertino-based company for anti-trust matters.
In 2015, it secured a combined $560 million settlement against Apple and publishing companies regarding price-fixing of e-books.
Earlier this year, the firm achieved a $100m settlement on behalf of iOS developers who were harmed by Apple’s stifling App Store policies.
UAE currency: the story behind the money in your pockets
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
MATCH INFO
Uefa Champions League quarter-final, second leg (first-leg score)
Porto (0) v Liverpool (2), Wednesday, 11pm UAE
Match is on BeIN Sports
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EHayvn%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EChristopher%20Flinos%2C%20Ahmed%20Ismail%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EAbu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Efinancial%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3Eundisclosed%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%2044%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3Eseries%20B%20in%20the%20second%20half%20of%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHilbert%20Capital%2C%20Red%20Acre%20Ventures%3C%2Fp%3E%0A
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
A list of the animal rescue organisations in the UAE
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
Fixtures
%3Cp%3E%3Cstrong%3EWednesday%2C%20April%203%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EArsenal%20v%20Luton%20Town%2C%2010.30pm%20(UAE)%3C%2Fp%3E%0A%3Cp%3EManchester%20City%20v%20Aston%20Villa%2C%2011.15pm%20(UAE)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EThursday%2C%20April%204%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ELiverpool%20v%20Sheffield%20United%2C%2010.30pm%20(UAE)%3C%2Fp%3E%0A
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
