Apple is
abusing its dominant position by restricting access to key hardware on iPhones, according to a new class-action lawsuit. The lawsuit was filed on behalf of financial institutions and credit unions that issue payment cards for Apple Pay.
Every modern iPhone has an NFC chip. Near Field Communication or NFC is the critical driving factor behind the meteoric rise of
cardless and contactless payments made through the Apple Wallet.
Apple Pay and Apple Wallet are only available on an iPhone, and they work by securely communicating with a POS (Point of Sale) machine via the NFC chip. The lawsuit alleges that Apple refuses to grant access to the NFC chip to any third-party payment processing company. It also claimed Apple Pay policies allowed the company to extract more than $1 billion in fees from card issuers.
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