SAN FRANCISCO — Credit unions and other U.S. payment-card issuers that paid Apple Pay transaction fees could recover money under an antitrust lawsuit after a federal judge certified their claims as a class action.
U.S. District Judge Jeffrey S. White issued the order Sept. 23 in a case brought by Affinity Credit Union, GreenState Credit Union and Consumers Co-Op Credit Union. The class covers U.S. entities that issued cards enabled for Apple Pay and paid Apple a fee for transactions on those cards. The plaintiffs estimate it includes thousands of issuers.
The credit unions allege Apple restricted competing tap-and-pay wallets on its devices, allowing it to charge issuers fees above competitive levels. According to the plaintiffs’ law firm, Hagens Berman, Apple charges U.S. issuers 0.15% on Apple Pay credit card transactions and half a cent on debit transactions. The firm says issuers pay no comparable wallet fee on Android and alleges Apple collects as much as $1 billion annually in the challenged fees.
What’s Being Sought
The plaintiffs seek repayment of the fees and a court order ending the alleged restrictions. Their expert proposes estimating damages by comparing Apple’s fees with the $0 issuer fee charged by other mobile wallets. Under that approach, damages would total the Apple Pay fees class members paid during the class period. Apple disputes the expert’s conclusions, the law firm stated.
White denied Apple’s request to exclude the expert’s testimony, finding that the company’s objections concerned his conclusions rather than whether his methods could be presented in court. The judge also certified the class for its request for an injunction, finding that an order lifting the challenged restrictions could provide relief to class members. www.hbsslaw.com
“We are pleased with the ruling and look forward to next steps of litigation,” Steve Berman, co-founder of Hagens Berman, said in a statement from the firm. White appointed Hagens Berman Sobol Shapiro LLP and Sperling Kenny Nachwalter LLC as class counsel.
Class certification allows the issuers’ claims to proceed together. It does not establish that Apple violated antitrust law or entitle credit unions to a payment. Apple denies the allegations, and the case remains pending.
