Tech
Apple Wants Consumers’ ‘Speculative’ Crypto Lawsuit Thrown Out
Feb. 5 (Reuters) – Apple (AAPL.O), opens a new tab has asked a U.S. judge to dismiss a consumer lawsuit accusing the iPhone maker of illegally blocking apps that facilitate cryptocurrency transactions and raising fees on platforms such as Venmo and Cash App. The Cupertino, California-based technology company said in a archive, opens a new tab The four Venmo and Cash App users who filed the antitrust lawsuit said Friday that they had not cited any illegal app policies or business agreements.
The lawsuit, filed in November, alleges that Apple’s restrictions on cryptocurrency technology have hurt competition for peer-to-peer payments and driven up fees for cash and credit card transactions on PayPal, Venmo, and Block’s Cash App. Apple is the sole defendant in the lawsuit.
Apple’s filing said the lawsuit was based on a “highly speculative hypothesis” that it had caused consumers to pay inflated fees. It said remonstrance failed to demonstrate how cryptocurrency transactions “are reasonable substitutes for the cash and credit card transactions offered by Venmo and Cash App.”
An Apple spokesperson and attorneys for the plaintiffs did not immediately respond to requests for comment Monday.
Peer-to-peer payment apps allow a user to send money via a mobile device directly to another user’s account.
The plaintiffs allege that Apple, Venmo, and Cash App “have repeatedly raised prices for transactions and services without any competitive scrutiny.” The lawsuit claims that Apple has shut out at least two Bitcoin wallet apps.
Apple has defended its guidelines for developer apps that involve cryptocurrency technology, arguing that they impose licensing criteria but do not entirely ban apps that facilitate cryptocurrency transactions.
The case is among several lawsuits filed by Apple over antitrust violations.
A federal judge said in September that payment card issuers can sue Apple for alleged anti-competitive practices involving its Apple Pay mobile wallet.
The case is Lamartine Pierre et al v. Apple Inc, United States District Court, Northern District of California, Case No. 5:23-cv-05981.
For Plaintiffs: Yavar Bathaee and Brian Dunne of Bathaee Dunne
For Apple: Belinda Lee and Sarah Ray of Latham & Watkins
To know more:
Judge Certifies Apple App Store Class ActionApple Sued by Visa and Mastercard in Antitrust Case Over Credit Card FeesVenmo and Cash App Users Sue Apple Over Peer-to-Peer Payment FeesApple Ordered to Face Apple Pay Antitrust LawsuitGet the latest legal news of the day delivered straight to your inbox with The Afternoon Docket, opens a new tab.
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Report by Mike Scarcella
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