Apple has just cleared one legal hurdle. The tech giant, often in hot water with the law, especially in the European Union, recently took on the European Commission after being slapped with a €500 million fine (around $586 million). This move shows Apple’s determination to challenge what it sees as unfair treatment from the EU. 
But there’s one less battle to worry about now.
In a win for Apple, Visa, and Mastercard, a federal judge has dismissed a major antitrust lawsuit that accused the trio of secretly collaborating to keep payment fees high and block competition. The lawsuit, filed by a group of merchants in 2023, was thrown out, not because it was wrong, but because the plaintiffs failed to provide sufficient evidence to support their claims.
The merchants, led by Mirage Wine and Spirits, argued that Visa and Mastercard were paying Apple massive sums-possibly hundreds of millions every year-to prevent Apple from launching its own payments network. They claimed that Apple, with its tech and massive user base, had the potential to disrupt the Visa/Mastercard duopoly. Instead, Apple allegedly took the money, played along, and left merchants stuck with high fees and no competition.
The judge didn’t say the idea was far-fetched, but the evidence simply wasn’t there. The court deemed the claims circumstantial, and there was no clear indication that Apple had plans to create a payment network. Additionally, the plaintiffs didn’t prove that Apple, Visa, and Mastercard had formed an illegal agreement. Though the case was dismissed, it wasn’t thrown out entirely-leaving the door open for the merchants to refile if they can gather more solid evidence.
This case touches on a broader discussion about Apple’s role in the payments industry. While Apple Pay isn’t a full-fledged payment network like Visa or Mastercard, it still wields significant power, acting as a gatekeeper in the payment process. Apple takes a cut from transactions while controlling how other apps and wallets access NFC and secure elements.
Merchants have long criticized Apple’s payment system, citing high fees and a lack of flexibility to negotiate better terms. Even if this lawsuit fizzles out, the pressure on Apple is far from over, especially with regulators in Europe continuing to push for more competition. In fact, some of that pressure has already led to change. To comply with the EU’s Digital Markets Act, Apple has unlocked access to its NFC tech, allowing developers to create their own tap-to-pay apps. This move signals just how seriously Apple is taking the regulatory heat.