Tech
Apple under fire for blocking cryptographic technology
Apple under fire for blocking cryptographic technology
Apple found itself in the crosshairs of a new antitrust lawsuit last week over alleged attempts to block the integration of cryptocurrencies into iOS payment apps. The class action complaint, filed in a federal court in California, alleges that the tech giant’s powerful apps such as Venmo and Cash App have entered into agreements that hinder decentralized cryptographic capabilities.
According to the lawsuit, Apple uses its control over the App Store and iOS platform to ensure that new payment apps exclude features such as wallets or cryptocurrency transfers. The plaintiffs argue that this coordination allows Apple to inflate its fees and stifle innovation that would threaten its in-app transaction fees.
Consumers pursuing the case are seeking damages for alleged overcharging, as well as an injunction to stop Apple from requiring payment apps to restrict cryptographic tools.
The lawsuit comes as Apple faces increasing scrutiny for anticompetitive distribution practices related to iOS apps. In April, an appeals court ruled against its rules that prohibit developers from directing users to external payment methods. Crypto apps have also faced hurdles to stay on the App Store due to Apple’s strict guidelines and revenue sharing policies.
Apple has yet to publicly respond to this latest case.