Apple has successfully defended a lawsuit alongside Visa and Mastercard that accused the companies of colluding to avoid competition in the digital payment space. Filed in December 2023 by Mirage Wine & Spirits and other retailers, the lawsuit alleged that Apple received a portion of transaction fees from Visa and Mastercard in exchange for not developing its own competing payment system. Plaintiffs claimed this arrangement created a lack of competitive pressure to reduce merchant fees or improve services. The suit also argued that Apple limited competition by blocking third parties from accessing its NFC (near-field communication) hardware, which could have enabled alternative payment services.
U.S. District Judge David Durgan of the Southern District of Illinois dismissed the case, stating that the plaintiffs offered only a “slew of circumstantial allegations” and insufficient evidence to support their claims, according to Reuters. While the current complaint has been dismissed, the judge has allowed the plaintiffs the opportunity to revise and refile their claims. Neither Apple, Visa, Mastercard, nor the plaintiffs stated the ruling. The case reflects broader scrutiny of digital payment practices and potential anti-competitive behavior in the mobile wallet sector.
