Apple has emerged victorious in an antitrust lawsuit filed against them by Venmo and Cash App customers. The lawsuit, which was initially lodged in San Jose on November 17, 2023, accused Apple of engaging in monopolistic practices through its Apple iOS App Store.
The complaint alleged that Apple purposely made it challenging for competitors of its Apple Pay service to introduce innovative features, such as integrating decentralized cryptocurrency payments into their products and services. Consequently, the plaintiffs claimed that Venmo, Cash App, and other similar services were unable to offer competitive pricing and improved functionality for iPhone users.
On March 26, 20, United States District Judge Vince Chhabria granted Apple’s motion to dismiss the case. The judge found several flaws in the complaint, stating that the plaintiffs failed to establish specific antitrust actions and neglected to include other competitors, like Zelle, in their initial complaint. The court also described the lawsuit as “speculative” and based on a flawed premise.
The main contention of the initial complaint was that Apple’s terms of service for apps like Venmo and Cash App prohibited them from incorporating cryptocurrency features. However, the judge dismissed this argument by citing a specific rule (Guideline 3.1.5 in the App Store T.O.S.) and deeming it irrelevant to the case.
The plaintiffs have 21 days from the filing date to submit amendments to the case, which could potentially convince the court to proceed with the lawsuit before the dismissal becomes permanent. Nevertheless, given the judge’s final remarks in the filing, the odds may not be in the plaintiffs’ favor.