Millions of iPhone owners could be owed payouts | Personal Finance | Finance
Millions of Brits could be in line for compensation after a £1.5billion legal action was launched against Apple over alleged ‘hidden fees’ linked to its iPhone wallet.
The claim, brought by consumer campaigner James Daley, accuses the US tech giant of anti-competitive behaviour through Apple Pay that he says has quietly pushed up everyday banking costs for years.
Mr Daley, founder of the advocacy group Fairer Finance, has filed the case with the Competition Appeal Tribunal, arguing that Apple Pay has effectively been the only contactless payment service available to iPhone users in the UK for the past decade.
He claims this dominance allowed Apple to levy fees on banks and card issuers that were then passed on to consumers – not just iPhone owners, but almost everyone with a bank account.
The lawsuit alleges Apple blocked rival wallet providers by refusing them access to the contactless payment technology on its iPhones, enabling it to charge fees that Mr Daley’s lawyers say “are not in line with industry practice”.
Similar fees are not charged on equivalent contactless payments made on Android devices built by Google, the claim adds.
Mr Daley said: “People will have no idea they’ve been paying more for everyday banking because of the way Apple has operated Apple Pay. By shutting out competition and charging hidden fees, Apple has pushed up costs for millions of consumers.
“Shockingly, this doesn’t just affect Apple Pay users or iPhone owners. Banks have passed these costs on to all customers, meaning everyone is paying the price.”
The case says the costs were absorbed into charges across a wide range of products, including current accounts, credit cards, savings and mortgages.
According to the filing, around 98% of consumers are exposed to banks that have listed cards on Apple Pay, meaning the vast majority of the UK population may have been affected. While individual payouts could average just £26, Mr Daley said the principle mattered as much as the money.
“I’m bringing this claim because consumers have been treated unfairly, and I want to help them get back what they’re owed,” he said. It’s also important that big firms like Apple are held to account for this kind of anti-competitive behaviour.
“The way it has run Apple Pay has quietly increased banking costs for consumers over many years. I want to put a stop to that – and secure compensation for the millions of people who have been affected.”
Apple strongly rejects the claims and said the lawsuit was “misguided and should be dismissed”.
In a statement, the company said: “Apple Pay is a seamless and secure way for users to make contactless payments, and one of many payment options available to consumers. Apple does not charge fees to consumers or merchants for using Apple Pay, and banks see meaningful benefits from offering Apple Pay to their customers – most notably fraud reduction.”
Apple added that it had recently opened up new technical capabilities, including near-field technology and secure element application interfaces, allowing third-party developers to enable contactless payments from their own apps, including in the UK.
“We will continue to ensure that UK customers have access to the payment options of their choice in a safe and secure environment,” the company said.
The legal action comes as regulators, including the Competition and Markets Authority and the Payments Systems Regulator, step up scrutiny of digital wallet services and the power wielded by big tech firms. The tribunal will now decide whether the case can proceed as a full class action – a move that could put Apple firmly in the dock and open the door to payouts for millions.
