Successful Dismissal of Antitrust Lawsuit
Apple, Mastercard, and Visa have successfully evaded a lawsuit that alleged the companies were colluding to maintain their dominance in point-of-sale payment card services, as reported by Reuters. The original lawsuit, filed in 2023 by beverage retailer Mirage Wine and Spirits, claimed that Apple was accepting bribes to prevent the development of its open payment network and to restrict access to the iPhone’s NFC-based "tap to pay" functionality to competitors.

The judge ultimately dismissed the case due to a lack of evidence that Apple had ever planned to offer its own payment network. Apple’s relationship with Visa and Mastercard dates back to the inception of Apple Pay, with the company working with both payment networks to process transactions. Additionally, Apple’s financial products, such as the Apple Cash card and Apple Card credit card, are tied to Visa and Mastercard, respectively. The New York Times reported in 2014 that Mastercard, Visa, and American Express were all involved in the development of Apple Pay.

The 2023 lawsuit alleged that Mastercard and Visa were paying Apple to maintain their relationship and dominance in the market. Specifically, the lawsuit claimed that Apple received 15 basis points (0.15%) on the value of all US credit transactions and $0.005 on all US debit transactions. Apple’s reluctance to open up NFC tap-to-pay to third-party developers was also seen as a means of maintaining Mastercard and Visa’s position and allowing them to increase fees.

However, these claims were not sufficient to convince the judge, who described them as "a slew of circumstantial allegations," according to Reuters. Although the judge dismissed the lawsuit, he left open the possibility of it being amended and refiled in the future.

Since 2023, Apple has made significant changes to how Apple Pay and NFC payments work. In compliance with the European Union’s Digital Markets Act, Apple opened up NFC tap-to-pay transactions to any developer building their own contactless payments system, regardless of their location. This move marks a significant shift in Apple’s approach to NFC payments and may have implications for the company’s relationships with Mastercard and Visa.