Hi! It’s Monday, March 25th, 2024 The Rundown The Department of Justice’s blockbuster antitrust case against Apple cites the tech giant’s alleged resistance to third-party digital wallets as an anti-competitive practice that helps Apple illegally maintain a monopoly in the smartphone market. Apple does not allow third party apps to offer its tap-to-pay functionality, and the suit alleges that prohibition means “Apple maintains complete control over how users make tap-to-pay payments with their iPhone . . . [and] deprives users of the benefits and innovations third-party wallets would provide.” The suit, where over a dozen state attorneys general have joined the DoJ, also claims that “Apple . . . uses its smartphone monopoly to extract payments from banks, which need to access customers that use digital wallets on iPhones.” Apple charges banks 0.15% for each credit card transaction mediated by Apple Pay, while payment apps from Samsung and Google are free to issuing banks.
Fintech Update, 3/18 - 3/24
Fintech Update, 3/18 - 3/24
Fintech Update, 3/18 - 3/24
Hi! It’s Monday, March 25th, 2024 The Rundown The Department of Justice’s blockbuster antitrust case against Apple cites the tech giant’s alleged resistance to third-party digital wallets as an anti-competitive practice that helps Apple illegally maintain a monopoly in the smartphone market. Apple does not allow third party apps to offer its tap-to-pay functionality, and the suit alleges that prohibition means “Apple maintains complete control over how users make tap-to-pay payments with their iPhone . . . [and] deprives users of the benefits and innovations third-party wallets would provide.” The suit, where over a dozen state attorneys general have joined the DoJ, also claims that “Apple . . . uses its smartphone monopoly to extract payments from banks, which need to access customers that use digital wallets on iPhones.” Apple charges banks 0.15% for each credit card transaction mediated by Apple Pay, while payment apps from Samsung and Google are free to issuing banks.