Apple is the target of a new class action lawsuit filed by Venmo and Cash App customers over high transfer fees between mobile wallets. There’s also a cryptocurrency angle – because why not?
Top comment by Nathan
I don't quite understand the issue. If you don't want to use Apple Cash, don't. How is Apple abusing their market position if they allow other payment services in the App Store? You can use PayPal on iPhone, you can use Venmo on iPhone, you can use Cash App on iPhone. Apple is literally allowing their competitors to be in the App Store. Regarding the fees, all of those services, including Apple Cash, don't charge you to transfer funds. They only charge you if you are impatient and want it immediately. Even then, the fee is less than 2%.
Reuters reported the details of the class action lawsuit on Monday:
Apple Inc (AAPL.O) has been sued by Venmo and Cash App customers in a proposed class action claiming the iPhone maker abused its market power to curb competition for mobile peer-to-peer payments, causing consumers to pay “rapidly inflating prices.”
Four consumers in New York, Hawaii, South Carolina and Georgia filed the lawsuit on Friday in San Jose, California, federal court. They alleged Apple violated U.S. antitrust law through its agreements with PayPal’s (PYPL.O) Venmo and Block’s (SQ.N) Cash App.
The lawsuit, which can be viewed online, claims that Apple blocking certain cryptocurrency wallets from the App Store has stifled competition. In turn, this has allowed transfer feeds between digital wallets on iPhone to exist as well as increase without options for consumers.
The lawsuit also aims to require Apple to allow crypto wallets that it has disallowed while it “seeks injunctive relief requiring Apple to segregate or divest its Apple Cash business, to prevent further harm to consumers, including Plaintiffs, in the iOS Peer-to-Peer Payment Market.”
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