Apple faces a £1.5 billion class action lawsuit in the UK over alleged hidden fees in its Apple Pay mobile wallet system. Consumer campaigner James Daley filed the case with the Competition Appeal Tribunal, claiming Apple blocked competition and charged fees that banks passed on to 50 million UK consumers.
The lawsuit alleges Apple maintained a monopoly on contactless payments for iPhone users over the past decade by denying rival wallet providers access to its near-field communication technology. According to the filing, Apple charged banks and card issuers fees that were not in line with industry practice, with similar fees not levied on Android devices.
"People will have no idea they've been paying more for everyday banking because of the way Apple has operated Apple Pay," Daley said. "By shutting out competition and charging hidden fees, Apple has pushed up costs for millions of consumers."
The campaigner argues these costs affected nearly all UK banking customers, not just iPhone owners. Banks absorbed the fees into charges across current accounts, credit cards, savings products, and mortgages. Approximately 98% of UK consumers use banks that have listed cards on Apple Pay, meaning the vast majority of the population may have been impacted.
Individual compensation could average £26 per consumer if the case succeeds. Daley, founder of advocacy group Fairer Finance, emphasized the principle matters 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.
Apple strongly rejected the claims, calling the lawsuit "misguided and should be dismissed." The company stated Apple Pay is one of many payment options available and doesn't charge fees to consumers or merchants. "Banks see meaningful benefits from offering Apple Pay to their customers - most notably fraud reduction," Apple said in a statement.
The tech giant noted it recently opened new technical capabilities allowing third-party developers to enable contactless payments from their own apps 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 added.
The legal action arrives as UK regulators increase scrutiny of digital wallet services. The Competition and Markets Authority announced in July it would investigate Apple and Google's mobile platforms to open them to more competition. The Payments Systems Regulator is also examining digital wallet power dynamics.
The Competition Appeal Tribunal must now decide whether the case can proceed as a full class action. This determination could take several years, with no guarantee of compensation for consumers. If approved, the lawsuit would represent the first major legal challenge against Apple Pay in the UK.
The case highlights growing regulatory pressure on big tech companies' payment ecosystems. Similar antitrust concerns have emerged in other markets, with regulators examining whether dominant platforms unfairly restrict competition through integrated payment systems.
