Apple, the tech behemoth known for its sleek devices and cutting-edge innovations, now finds itself entangled in a legal battle. A private antitrust lawsuit has been greenlit, accusing Apple of stifling competition within its Apple Pay mobile wallet ecosystem. The backdrop to this legal drama is the alleged monopoly Apple wields over tap-and-pay wallets for its iPhones, iPads, and Apple Watches.

This surely comes as no surprise. This is the company for which the term “walled garden” might as well have been invented. It’s also the company that’s constantly in the news for its wonderful App Store practices and fees.

Alleged Anticompetitive Practices

The lawsuit, spearheaded by Illinois’ Consumers Co-op Credit Union, Iowa’s Affinity Credit Union, and GreenState Credit Union, alleges that Apple engaged in anticompetitive practices. It centers on Apple's purported restriction of contactless payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term on iOS devices to its proprietary Apple Pay. The suit claims that Apple charged payment card issuers fees for the use of its mobile wallet, leading to allegations of illegal profiteering.

Apple is ordered to face Apple Pay antitrust lawsuit https://t.co/5vYTUJS9lj pic.twitter.com/z1kmagGv43

— Reuters (@Reuters) September 27, 2023

The Accusations

Apple is under fire for allegedly coercing users of its devices into exclusive use of its tap-to-pay wallet. In contrast, Android-based devices offer consumers a choice of wallets, including Google Pay and Samsung Pay. The plaintiffs argue that Apple's practices resulted in over a billion dollars in excess fees paid by approximately 4,000 banks and credit unions using its wallet. Moreover, they claim that this stifles innovation and makes the product less user-friendly.

We can’t help but think about the various ways in which Apple has done its very best to control how users use its products, from the aforementioned “Walled Garden” to seemingly intentionally making the iPhone hard to repair and forcing the use of the Lightening Cable (until recently).

Apple's Response

Apple is fighting back. The company contends that it charged nominal fees to smaller card issuers and highlights that consumers still have the option to use cash, physical credit and debit cards, and alternative payment methods.

Previous Run-Ins with Antitrust Authorities

This is not Apple's first brush with antitrust regulators. In May 2023, EU antitrust regulators sought more information on Apple's mobile payment system, further escalating a prior case against the company. EU regulators had charged Apple with limiting competitors' access to technology necessary for mobile wallets. Apple, in response, emphasized the availability of multiple payment options to European consumers.

Payment via Bitcoin in Singapore

As all this goes on, Singapore-based Apple premium reseller iStudio is partnering with crypto payment gateway Triple-A to allow customers to purchase Apple products with cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, proving that all currencies are compatible with Apple products. This move aims to enhance the shopping experience, offering crypto enthusiasts a new way to acquire Apple products while benefiting from lower transaction fees and fraud protection.

iStudio's embrace of cryptocurrencies through Triple-A reflects the ongoing evolution of payment methods in the tech industry. As this partnership takes shape, iStudio is poised to capture a tech-savvy customer base and streamline its payment processes.

This collaboration also addresses concerns regarding cryptocurrency price volatility by providing a conversion mechanism into fiat currency, ensuring a secure and seamless payment experience for customers.