Apple Inc (AAPL.O) has been sued by Venmo and Cash App customers in a proposed class action claiming the iPhone maker abused its market power to curb competition for mobile peer-to-peer payments, causing consumers to pay “rapidly inflating prices.”
Four consumers in New York, Hawaii, South Carolina and Georgia filed the lawsuit on Friday in San Jose, California, federal court. They alleged Apple violated U.S. antitrust law through its agreements with PayPal’s (PYPL.O) Venmo and Block’s (SQ.N) Cash App.
Apple’s agreements limit “feature competition” within peer-to-peer payment apps, including prohibiting existing or new platforms from using “decentralized cryptocurrency technology,” the complaint said.
The lawsuit seeks an injunction that could force Apple to divest or segregate its Apple Cash business.
Cupertino, California-based Apple, the only defendant in the case, did not immediately respond to a request for comment.