Apple Hit with Lawsuit Alleging Cryptocurrency Restrictions

An iOS payments app developer and a tech behemoth are allegedly conspiring to restrict peer-to-peer (P2P) payment capabilities and obstruct cryptocurrency technology, according to a class-action lawsuit filed by dissatisfied customers.

Apple allegedly entered into anticompetitive agreements with PayPal’s Venmo and Block’s Cash App on November 17 in a California district court, according to the complaint.

These agreements restricted the use of decentralized cryptocurrency technology in payment apps, causing users to pay “rapidly inflating prices.”

The filing states, “By prohibiting the incorporation of decentralized cryptocurrency technology into existing or new iOS peer-to-peer payment apps, these agreements restrict feature competition and the price competition that would result from it across the board.”

They also said that Apple “exercises unrestricted control over every app installed and executed on iPhones and iPads” because of “technological and contractual restraints,” such as “contractual limitations on web browser technology” and “hardware-enforced App Store exclusivity.”

The lawsuit alleged that Apple can and does compel new-to-market iOS P2P payment applications to prohibit cryptocurrencies “as a condition for entry” by utilizing these restrictions.

As consumers who have paid inflated fees as a result of Apple’s trade restrictions on the iOS P2P payment market, the plaintiffs identify themselves.

In addition to seeking injunctive relief prohibiting the firm from further entering into and enforcing anticompetitive agreements that impede iOS P2P payment market competitors and would-be entrants, they seek compensation for exorbitant fees and overcharging caused by Apple’s alleged anticompetitive conduct.

A comprehensive account of the emergence and development of decentralized cryptocurrencies, peer-to-peer payment applications, and Apple’s market entry is encompassed in the 58-page filing.

By prohibiting apps from directing users to non-Apple-linked payment solutions, the United States Court of Appeals for the Ninth Circuit ruled in April that Apple had violated California’s competition laws.