Apple, Mastercard, Visa case dismissed for lack of evidence

A lawsuit accusing Apple, Mastercard, and Visa of antitrust violations has been dismissed due to insufficient evidence.

Filed in 2023 by Mirage Wine and Spirits, the case alleged collusion and bribery related to payment card services.

It claimed Apple received payments from Mastercard and Visa to avoid creating its own payment network and restricted the iPhone’s NFC-based “tap-to-pay” feature for third-party developers.

The lawsuit also said that Apple earned 15 basis points (0.15%) from US credit transactions and US$0.005 per US debit transaction.

The judge dismissed the case, citing a lack of evidence supporting Apple’s intent to build its own payment system.

He called the claims “circumstantial allegations” but allowed the plaintiff to amend and refile the lawsuit.

Apple processes payments via Apple Pay using Visa and Mastercard networks, with its Apple Card and Apple Cash card tied to the two firms.

🔗 Source: Engadget

🧠 Food for thought

1️⃣ Payment card antitrust litigation has a decades-long history with massive settlements

The dismissed Apple case represents just the latest chapter in a long history of payment industry antitrust battles dating back to the 1990s.

In 1998, the Department of Justice filed a landmark antitrust lawsuit against Visa and Mastercard for controlling approximately 75% of all U.S. credit card purchases, challenging their “duality” structure that reduced competition and innovation 1.

These legal challenges have resulted in record-breaking settlements, including a $5.54 billion agreement in 2019 that marked the largest antitrust class action settlement in history after fourteen years of litigation 2.

Merchants have consistently fought against interchange fees—which can reach 3% per transaction—and restrictive rules like “Honor All Cards” that limit their ability to choose lower-cost payment options 3.

The current dismissal highlights the difficulty of proving collusion in the payment industry, as it requires substantial evidence of explicit agreements rather than circumstantial market behaviors.