Apple faces major lawsuit over Apple Pay charges that impact UK consumers
A leading financial campaigner has secured funding for a group action against Apple over its mobile payment wallet
Apple is facing another major lawsuit from UK consumers accusing it of abusing its dominant position in relation to its Apple Pay service.
James Daley, an eminent financial campaigner, is working with Milberg London LLP, a leading UK law firm specialising in disputes, including large-scale group litigation, to bring a claim against Apple for abuse of its dominant position in relation to Apple Pay. Daley has secured significant funding from Omni Bridgeway to take legal action against Apple.
Zena Prodromou, partner at Milberg London leading the case, said:
“We argue that Apple has abused its dominant position in the iPhone ecosystem and that its anti-competitive practices in relation to Apple Pay have caused card issuers additional costs that are ultimately borne by the UK consumer.”
“James is seeking compensation for the many millions of UK consumers affected by Apple’s alleged anti-competitive conduct.”
Milberg has issued a Letter Before Action to Apple and expects to file the claim with the Competition Appeal Tribunal within weeks.
More on the claim and how consumers can sign up to stay informed can be found on the dedicated Apple Pay claim pages hosted by Consumer Voice.
“Unfair charges borne by UK consumers”
James Daley is seeking to represent around 50 million UK consumers.
Daley claims that Apple has ensured Apple Pay is the only mobile wallet available for iPhone users and imposed unfair commercial terms on card issuers, including fees for using Apple Pay. These costs, he argues, are ultimately borne by consumers in the form of higher charges across a range of banking products – whether or not they use Apple Pay or even own an Apple device.
Prodromou added: “This is the first claim of its kind in the UK.” Similar concerns about Apple Pay have already been the subject of regulatory investigations in other countries, and legal proceedings are underway in foreign courts.
Funding secured to launch legal action
Daley has secured substantial funding from litigation financing firm Omni Bridgeway to launch his claim against Apple.
“Class actions are vital as they often represent the only avenue for consumers to gain access to justice,” said Simon Latham, investment manager at Omni Bridgeway.
Latham added: ‘We recognise that for most people the thought of litigation and the associated costs is daunting, but equally they want to see those that break the rules held to account.”
Daley is also working with a team of economists from Oxera Consulting LLP and instructed barristers Thomas de la Mare KC of Blackstone Chambers, and Julian Gregory and Alastair Holder Ross of Monckton Chambers.
Apple facing mounting legal pressure in the UK
Apple is already on trial in the UK facing a £1.5 billion compensation claim from consumers who allege they were overcharged in its App Store. A further trial is set to go ahead over allegations that Apple sold iPhones with defective batteries unable to cope with performance demands, including automatic iOS updates.
Consumer group Which? has also launched a £3 billion claim against Apple, alleging that the company breached competition law by forcing its iCloud services on customers.
Sign up here to get the very latest on these claims as they progress.
Milberg’s growing track record
This new Apple Pay claim is the third major class action brought by Milberg London’s competition litigation team in as many years. Other high-profile cases include a £5 billion claim against Sony PlayStation and a claim against video gaming platform Steam.
Natasha Pearman, Partner and Head of Competition Litigation at Milberg London, said:“This claim will be the third in three years for the Milberg competition team and I’m proud to be leading a growing team that is making a significant contribution to levelling the playing field for UK consumers against dominant companies that we believe have acted unfairly, broken the law and harmed consumers.”
