Tech
Apple Defeats Antitrust Lawsuit Over Consumer Crypto Payments For Now
A federal judge in San Francisco dismissed a consumer lawsuit accusing Apple of raising fees on platforms like Venmo and Cash App ban payment apps from implementing cryptocurrency transactions.
In a ruling Tuesday, U.S. District Judge Vince Chhabria called the proposed class action “speculative” and said it “suffers from several fatal problems.” He gave the appellants 21 days to amend their complaint.
The November 2023 lawsuit alleged that Apple was imposing restrictions on cryptocurrency technology in its popular App Store, hurting competition for peer-to-peer payments, and increasing fees for cash and credit card transactions on PayPal’s Venmo and on Block’s Cash App. He said Apple has excluded at least two Bitcoin wallet apps.
Apple did not immediately respond to a request for comment Tuesday. The company denied any wrongdoing.
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An attorney for the plaintiffs declined to comment.
Apple, based in Cupertino, California, asked Chhabria in February to dismiss the lawsuit, arguing that the plaintiffs failed to show any illegal app rules or business agreements.
The plaintiffs’ lawsuit alleged that Venmo, Cash App and others agreed to an App Store-specific iPhone guideline that they said prevented developers from using certain cryptocurrency transactions.
In his ruling, Chhabria said it was unclear whether it was an “unlawful arrangement” under federal antitrust law for companies that follow that guideline.
Apple is facing other antitrust lawsuits, including one from the U.S. Department of Justice and a group of states that allege the iPhone maker was illegally monopolizing the smartphone market. Apple denied the claims and said it would fight the case.
In September, a federal judge in another case said payment card issuers can sue Apple over alleged anticompetitive practices involving its Apple Pay mobile wallet.
More lawsuits challenge Apple’s rules for iCloud storage, and consumers are pursuing a class action accusing the company of monopolizing the iPhone app market.
The case is Lamartine Pierre et al v. Apple Inc, United States District Court, Northern District of California, Case No. 5:23-cv-05981.
For the appellants: Yavar Bathaee and Brian Dunne of Bathaee Dunne
For Apple: Belinda Lee and Sarah Ray of Latham & Watkins
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