Apple’s control over contactless payment systems has been a legal debate in the United States for a while. In 2023, a liquor named Mirage Wine and Spirits filed a lawsuit with serious allegations against Apple, Visa and Mastercard. This case claimed that the three companies were acting contracted to protect the existing payment infrastructure. Allegedly, Apple closed the NFC -based payment system to external developers and strengthened Visa and Mastercard’s position on the market.
The case included Apple’s claim that it was directly financial gain in exchange for these policies beyond the preventive practices of competition. It was claimed that the company earned 0.15 percent over every credit card transaction in the US and $ 0.005 for each debit card transaction. It was suggested that these revenues motivate Apple’s decision to limit contactless payment technology only to Visa and Mastercard. Thus, alternative payment systems were not possible to work on the iPhone.
Apple has been working with Visa and MasterCard for a long time
However, the Court ruled that these claims were not based on a strong evidence. According to Reuters, the judge considered the evidence presented as indirect assumptions. It was stated that no concrete information has been shared that Apple plans to establish an independent payment infrastructure. For all these reasons, the case has been completely rejected for now.
Apple’s relationship with Visa and Mastercard is not new, but its history dates back to the exit of Apple Pay in 2014. The Apple Cash card in the Apple Wallet is running through the Visa network, while the Apple Card is offered to users with MasterCard infrastructure. These collaborations are the basis of Apple’s payment solutions. Therefore, the court evaluated that Apple’s existing system is natural.
In spite of everything, it was stated that the case was not completely closed and that he could come up again under certain conditions. The judge gave the plaintiff the right to reorganize and present the file. If new and direct evidence can be achieved, the case can be reopened. This means that the control of Apple on payment infrastructures in the future can be carried back to the judiciary.
Apple’s policies in Europe have some remarkable changes. Within the scope of the European Union’s Digital Markets Law, Apple had to open NFC technology to third parties. Thus, European -based developers had the opportunity to improve their own systems using the iPhone’s contactless payment infrastructure. This change is not only limited to the EU, but also for developers in the United States and the United Kingdom.
Nevertheless, Apple still integrates its payment systems in the US market with Visa and Mastercard. The compulsory expansion in Europe has not yet found a legal response in the USA. Therefore, Apple Pay’s structure in America seems to not have a major transformation in the short term. This stability in the payment infrastructure also maintains Visa and Mastercard’s market share.
In addition to all these, more strict legal inspections are expected on the competition policies of technology giants. In particular, the US Federal Trade Commission and the European Commission carefully monitor the dominance of major technology companies on payment systems. Apple’s opening the NFC system to the outside may be a sign of a wider wave of arrangement. In this context, it is among the expectations that systems such as Apple Pay will become more transparent and accessible.