Lawsuit accuses Apple of antitrust violations over Apple Pay

The plaintiff said Apple’s anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege

Apple Inc was sued on Monday in a proposed class action by payment card issuers accusing the iPhone maker of abusing its market power in mobile devices to thwart competition for its Apple Pay mobile wallet.

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According to a complaint filed in San Francisco federal court, Apple "coerces" consumers who use its smartphones, smartwatches and tablets into using its own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets such as Google Pay and Samsung Pay.

The plaintiff, Iowa's Affinity Credit Union, said Apple's anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees annually for the privilege.

It also said Apple's conduct minimises the incentive for the Cupertino, California-based company to make Apple Pay work better and make it more resistant to security breaches.

"Apple's conduct harms not only issuers, but also consumers and competition as a whole," the complaint said.

The lawsuit seeks unspecified triple damages, and a halt to Apple's alleged anticompetitive conduct.