Key Point
- Judge Chhabria said the case had “several fatal problems”
- He said it would be “difficult” for the case to be remedied even with an amendment application.
- Apple faces multiple antitrust claims, including a recent major Justice Department lawsuit
Apple has won a consumer lawsuit accusing tech giants of antitrust violations for preventing payment apps Venmo and Cash App from facilitating cryptocurrency transactions.
In a ruling Tuesday, U.S. District Judge Vince Chhabria said the proposed class action has “several critical problems” and that the plaintiffs “have not adequately asserted their antitrust position.” No (and perhaps even a Section 3 position). Alleged anti-competitive conduct and injury to plaintiff.”
Chhabria went on to point out that in addition to the “speculative nature” of the complaint, there were other “deficiencies” as well. “Apple’s motion to dismiss allows them to [plaintiffs] I realized that there are many more potential problems. In fact, it is difficult to see how an amendment could save this case,” he argued, giving the plaintiffs 21 days to amend their complaint. He argued that if no amendments are submitted by the deadline, “the rejection will be prejudicial.”
The four consumers filed the lawsuit in November, arguing that Apple's App Store agreements with Cash App and Venmo limit “feature competition” in peer-to-peer applications and limit payment platforms' use of “decentralized cryptocurrency technology.” They argued that this violates U.S. antitrust laws. Four consumers claimed that Apple is making it difficult for payment providers to adopt innovations such as cryptocurrency transactions.
The filing of this lawsuit comes as Apple continues its uphill climb in legal woes outside the realm of cryptocurrencies.
Just last week, the US Department of Justice (DOJ) filed a lawsuit against the iPhone maker for “monopolizing or attempting to monopolize the smartphone market.” According to a press release, the Justice Department said Apple “unlawfully maintains a smartphone monopoly by selectively imposing contractual restrictions on developers and withholding critical access points from them.” Stated.
Antitrust claims against Apple have been a hot topic in the tech industry for years. But the Justice Department's latest action is the largest ever taken in the United States against one of the world's largest technology companies. A total of 17 US states joined the Justice Department's lawsuit.
Similar to consumer lawsuits accusing the App Store of restricting competition, the Justice Department lawsuit also notes that the store's rules are designed to force Apple users to stick with the Apple ecosystem. ing. “If left unchecked, Apple will only continue to strengthen its smartphone monopoly,” said Attorney General Merrick Garland.
Outside the United States, Apple has also come under scrutiny in the European Union as a “gatekeeper.” Margrethe Vestager, the bloc's head of competition, said Apple and other big tech companies needed to change their “behavior” when it came to competition.
