Apple Wins Dismissal of Antitrust Lawsuit Alleging Collusion With Visa and Mastercard
Judge Rules Against Claims of “Bribes” and Anti-Competitive Conduct in Apple Pay Operations
Apple has successfully defended itself against a proposed antitrust class action lawsuit that accused the company of colluding with Visa and Mastercard to suppress competition in the mobile payments space. The case, brought by Illinois-based retailer Mirage Wine & Spirits and other merchants, was dismissed by a federal judge in the Southern District of Illinois, handing a significant legal victory to Apple and its alleged partners.
The Lawsuit: Allegations of Bribery and Market Suppression
The plaintiffs claimed that Apple accepted undisclosed payments—referred to as “bribes”—from Visa and Mastercard to avoid building its own competing payment network. Since the launch of Apple Pay in 2014, the service has operated exclusively through established networks like Visa, Mastercard, and American Express, enabling millions of transactions via iPhone and Apple Watch.
Key claims from the lawsuit included:
- Apple’s refusal to develop an independent payment system was allegedly tied to financial incentives from the dominant card networks.
- These agreements were framed as a conspiracy to block innovation and deter rivals from entering the mobile payments arena.
- Apple’s tight control over iPhone NFC (Near Field Communication) hardware was also called out, with plaintiffs arguing that this blocks third-party wallets and restricts alternative payment methods from functioning on Apple devices.
Court’s Decision: Lack of Concrete Evidence
Despite these claims, the judge ruled that the plaintiffs failed to present adequate factual evidence. The allegations, according to the court, were largely based on speculation rather than provable collusion.
The court concluded that Apple’s reliance on Visa and Mastercard is due more to the technical and regulatory complexities of launching a payment network—not because of secret financial arrangements.
The judge also addressed the plaintiffs’ claim that Apple collects a 0.15% fee on credit card transactions and $0.005 on each debit card transaction processed via Apple Pay. While these fees are real, the court determined that they do not, on their own, prove anti-competitive behavior or unlawful agreements.
NFC Access Remains a Sticking Point
The lawsuit also criticized Apple’s exclusive control of its NFC chip, a move that has come under increasing scrutiny in both U.S. and international markets. Third-party developers and payment providers cannot access the chip, meaning only Apple Pay can use tap-to-pay features on iPhones.
While the court acknowledged this claim, it found the legal arguments insufficient to support a claim of market manipulation—at least with the evidence currently presented.
Case Not Closed Yet: Plaintiffs Get 30 Days to Refile
Although the current suit has been dismissed, the judge granted plaintiffs 30 days to amend and refile their claims. Should they fail to revise and submit within that time frame, the case will be dismissed with prejudice, preventing future litigation on the same grounds.
