BUSINESS

Apple's Big Win in the Payments Game

USAWed Jul 16 2025

A recent court ruling has given Apple a significant victory in a legal battle involving accusations of stifling competition in the payments industry.

The Case

The plaintiffs, a group of merchants, accused Apple, along with Visa and Mastercard, of collaborating to limit competition. They claimed that Apple received substantial payments from Visa and Mastercard to avoid creating its own payment network.

Merchants' Arguments

  • The payments, a percentage of transaction values, were alleged to be a form of bribery.
  • This arrangement kept transaction fees high and limited innovation in the payments sector.

Apple's Position

Apple has always relied on existing networks like Visa, Mastercard, and American Express for its Apple Pay service.

The Court's Decision

The judge ruled in favor of Apple, stating:

  • Apple's agreements with Visa and Mastercard allowed Apple to compete with them.
  • Starting a new payment network is complex and costly, making the merchants' claims less plausible.

Next Steps

The merchants have a chance to revise their complaint and try again. If they miss the deadline, the case will be dismissed permanently.

This ruling highlights the ongoing tensions between tech giants and merchants over control and costs in the digital payments landscape.

questions

    Is Apple's deal with Visa and Mastercard the tech equivalent of a 'protection racket' but with more shiny gadgets?
    Could Apple's agreements with Visa and Mastercard be part of a larger plan to monopolize the global payments industry?
    Are the plaintiffs in this case being silenced to protect the interests of Apple, Visa, and Mastercard?

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