Court Dismisses Class Action Lawsuit Against Apple Over Crypto Payment Restrictions
In a recent ruling, a California judge has dismissed a class action lawsuit against Apple that accused the tech giant of imposing restrictions on third-party crypto payments. The lawsuit, filed in November 2023, alleged that PayPal’s Venmo, Google Pay, Cash App, and Apple Cash all agreed to Apple’s store guidelines, thereby preventing these apps from supporting decentralized crypto transactions.
District Judge Vince Chhabria stated that the complaint had several “fatal problems,” including a lack of adequately alleged agreements between Apple and other payment services. He expressed doubts regarding the alleged restrictions on decentralized crypto transactions, stating that it was unclear if such agreements would be unlawful under the Sherman Antitrust Act.
The judge also found that the allegations of antitrust standing were inadequate due to the speculative nature of the claims, as the connection between Apple’s behavior and the alleged injury was not clear. The plaintiffs claimed they had paid overinflated fees to certain third-party apps due to Apple’s agreements.
Additionally, the lawsuit faced issues with its market definition, as the payment app Zelle, mentioned by the plaintiffs, was excluded from the relevant market definition.
While the judge acknowledged other problems with the case, he stated that an amendment to the lawsuit was unlikely to change the outcome. However, the court has given the plaintiffs 21 days to amend the case, and if they fail to do so, the case will be dismissed without prejudice.
Apple had requested the dismissal of the class action lawsuit in February, making similar arguments that were confirmed in the judge’s ruling. Apple’s defense emphasized that there are apps in the App Store that facilitate decentralized crypto transactions, contrary to the plaintiffs’ claims. They also highlighted that the guideline mentioned by the plaintiffs does not categorically prohibit apps offering decentralized crypto transactions.
This ruling in favor of Apple underscores the ongoing battle between centralization and decentralization in the world of cryptocurrency technology.