Venmo and Cash App Users Sue Apple Over Antitrust Laws

Apple Inc. finds itself at the center of an antitrust lawsuit. The claimants, four Venmo and Cash App users, contend that Apple exploits its influential market position in the mobile peer-to-peer payment sector, stifling competition and artificially inflating prices. According to the plaintiffs, Apple’s aforementioned business conduct breaches U.S. antitrust regulations.

The four plaintiffs hail from various U.S. states, and “they claim that Apple’s agreements with Venmo and Cash App have limited ‘feature competition’ and resulted in rapidly inflating prices for transactions and services, with no competitive checks.” Initiated in San Jose’s federal court in California, the lawsuit demands an injunction that could compel Apple to divest or partition its Apple Cash operations.

The complaint further alleges that Apple explicitly rejected Bitcoin wallet apps Zeus and Damus from its App Store and that these agreements hinder feature competition such as the incorporation of decentralized cryptocurrency technology within peer-to-peer payment platforms. The plaintiffs suggest that a peer-to-peer app leveraging decentralized crypto technology would enable iPhone users to send payments to one another directly, bypassing any intermediary.

This new development adds to the mounting problems Apple is facing from different fronts. The tech company has come under fire for its alleged anticompetitive distribution system concerning iOS applications.

A significant setback for Apple surfaced in April when an appeals court reached a decision against the tech leader. The court opposed the company’s rules that prevent app developers from guiding users toward alternate payment mechanisms. This decree emphasized the pivotal issue at hand, highlighting the potential imbalance within the mobile application marketplace.

Moreover, the journey of cryptocurrency applications on Apple’s App Store has been far from smooth due to the company’s stringent guidelines and profit-sharing protocols. These apps are encountering significant obstacles in regard to maintaining their presence on the platform, further raising concerns about the fairness of Apple’s policies.