Fintech Insights - Apple Sued for Potential Digital Payments Market Monopoly

Apple is currently facing a class action lawsuit, in the US, over an allegation that the firm holds an illegal monopoly over contactless payments through the use of its Apple Pay mobile wallet. The complaint was filed by Affinity Credit Union, in a Californian federal court; stating that Apple coerces its smartphone, smartwatch, and tablet users into using its own digital wallet for contactless payments.

A direct comparison can be made to similar tech giants, Google and Samsung, who allow their product users to select the digital wallet of their choice. Additionally, there are concerns that, as a monopoly, Apple has little incentive to optimise the efficiency of its payment system to not only create a better user experience but also to minimise costs. The lawsuit is not the first instance of Apple being questioned over its digital wallets market dominance, as the company has been an ongoing focus for the European Commission since 2020.