In a significant legal victory for Apple, a U.S. District Judge has put an end to a lawsuit accusing the tech giant of imposing unfair transaction fees and demonstrating a lack of trust in cryptocurrency through its App Store policies. The case, brought forward in November 2023 by users of Venmo and Square Cash, was aimed at challenging Apple's stance on U.S. antitrust laws.
On a decisive Tuesday, Judge Vince Chhabria ruled against the class-action lawsuit, granting the plaintiffs a 21-day period to amend their complaint or abandon their legal challenge altogether. According to Reuters, the judge criticized the lawsuit for its speculative assertions and identified "several fatal problems" within its framework, ultimately sending it back to the drawing board.
The lawsuit centered on Apple's policy requiring cryptocurrency transactions to be processed via an exchange, thereby preventing payment apps from directly managing such transactions. Plaintiffs argued this system stifled competition and led to increased transaction fees, going as far as to label the peer-to-peer payments market an "Apple-led cartel" that unfairly charges consumers.
However, Judge Chhabria's ruling highlighted the ambiguity in asserting that adherence to Apple's App Store guidelines on cryptocurrency payments could be considered an unlawful agreement under antitrust laws. The judge further expressed doubt about the possibility of reviving the lawsuit, suggesting it faces slim chances of making a comeback unless significant new evidence emerges.
Apple had previously requested the court to dismiss the lawsuit in February, contending that the plaintiffs had failed to prove any illegal app regulations or business practices. Given the judge's remarks, it appears Apple is set to move beyond this legal hurdle without further challenge.
