In a recent ruling, a lawsuit accusing Apple of monopolistic practices in its App Store by restricting cryptocurrency transactions was dismissed by a judge in San Francisco.
Filed by users of Venmo and Cash App, the lawsuit argued that Apple’s policies forced these payment apps to increase their fees. The plaintiffs contended that Apple’s refusal to allow apps that facilitate cryptocurrency transactions stifled competition in the mobile peer-to-peer payment industry.
They suggested that a payment app based on decentralized cryptocurrency technology would enable iPhone users to make payments directly to one another without intermediaries, promoting competitive pricing.
The lawsuit claimed that by adhering to an App Store guideline prohibiting cryptocurrency transactions, Venmo, Cash App, PayPal, and other payment services entered into an illegal agreement.
However, Apple countered that the plaintiffs failed to prove any unlawful app rules or business agreements. In response, the judge found the lawsuit to be based on speculative arguments with several critical flaws, leading to its dismissal.
Notably, Apple’s App Store policies do permit the presence of cryptocurrency wallets for storing virtual currencies, and apps are allowed to carry out cryptocurrency transactions through approved exchanges in jurisdictions where they are licensed to operate as crypto exchanges.
The judge has granted the plaintiffs a 21-day period to file an amended complaint.
Despite this, the judge expressed skepticism about the potential for the lawsuit to be successfully revised.
