Users of payment apps Cash App and Venmo have banded together to file a lawsuit against Apple in a legal move that could have repercussions for the cryptocurrency sector. According to the case, Apple and these popular payment platforms entered into anti-competitive agreements whereby they plotted to prevent peer-to-peer (P2P) payments for cryptocurrency apps.
The plaintiffs claim that Apple has signed contracts that purposefully limit payment apps like Cash App and Venmo’s capacity to support peer-to-peer cryptocurrency transactions. The main focus of the complaint is Apple’s policies regarding fee sharing.
According to the lawsuit, this fee-sharing requirement impedes the development and innovation of P2P payment apps supporting cryptocurrencies while giving Apple’s payment services an unfair advantage. Excerpts from the formal complain, reads that “the agreements by Apple has the propensity to limit competition in the future.”
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The lawsuit provides insight into the origins and consistent development of decentralized cryptocurrencies and peer-to-peer payment apps. According to the lawsuit, Apple’s restrictive policies prevent the natural evolution of the digital payment landscape and stifle competition.
Ali Raza from Invezz.Com has described that the lawsuit symbolizes the continuous conflict between established players and the developing cryptocurrency space, not just a dispute between tech giants. The case is considered extensive because of the 58 page-filing.
The filing was said to provide a comprehensive history, the continuous growth of the P2P payment systems, and the decentralized cryptocurrency system’s complete operations. If the allegations against Apple are proven to be true, it will break the record as a repeated offender in such a case. It was gathered that in April 2022, the Court of Appeals already found the company guilty of violating the Californian competition laws.
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Raza also believes that the legal developments are of particular interest to the cryptocurrency community, as they have the potential to impact the regulatory framework governing digital assets and their assimilation into traditional financial services.
The legal outcome of this lawsuit is expected to establish significant guidelines for how digital assets are handled throughout the larger financial ecosystem. It was later gathered that Apple did not have a particular fee-sharing procedure or pattern. It allows app developers to share 30% of all the transaction revenues with Apple Inc.
It is also believed that this has become a major obstacle for cryptocurrency companies wishing to provide their services to iOS users. Apple has also deleted some apps from its app store for going against the company’s terms and conditions. The BTC-friendly social media platform app Damus has fallen victim to this.
The company management explained that its removal is connected to the app’s tipping features. The said feature allows users to dash content creators some money using the BTC “Lightning Network” feature. According to the statement by Apple, this feature goes against its rules and blocks developers from selling some in-app content.
However, Apple has requested that all the transactions with its services get a 30% cut. Apple has also explained that it only removed some cryptocurrency payment apps because Apple itself doesn’t accept cryptocurrency payments. Meanwhile, Apple, back in October, also removed MetaMask, an Ethereum wallet, but quickly had it restored.