Apple Triumphs in Court Over Antitrust Lawsuit Filed by Venmo and CashApp
Summary:
Apple has won a court case in which Venmo and CashApp accused it of antitrust practices involving the iOS App Store. The plaintiffs claimed that Apple made it hard to incorporate features for crypto payments, thwarting competition. However, US District Judge Vince Chhabria dismissed the lawsuit, citing various problems, including unclear allegations of antitrust practices. The plaintiffs have 21 days from the dismissal to modify their case before it's closed permanently.
Apple has secured a victory in court against Venmo and CashApp after U.S. District Judge Vince Chhabria threw out a lawsuit accusing the tech giant of antitrust behaviors. The plaintiffs initially filed the lawsuit on November 17, 2023, alleging that Apple's conduct involving its iOS App Store amounted to monopolistic tactics. The essence of the charge was that Apple intentionally made it challenging for rival services to integrate attractive features like cryptocurrency payments into their offerings. Consequently, Venmo, CashApp, and other similar platforms argued that they couldn't roll out improvements to compete effectively or enhance the user experience for iOS users.
However, Judge Chhabria approved Apple's dismissal request on March 26, 2024. The court documents stated that the lawsuit had several significant problems. It was reported that the plaintiffs couldn't identify specific antitrust activities or explain why they hadn't included competitors like Zelle in their initial filing. The lawsuit was deemed "hypothetical," with an apparently flawed underpinning assumption. The plaintiffs had argued that Apple's terms of service on the App Store influenced third-party app features, preventing platforms like Venmo and CashApp from incorporating crypto features. However, the Judge dismissed this interpretation of App Store's guideline 3.1.5, which was at the heart of this argument.
The court documents stated:
"Assuming that Guideline 3.1.5 does regulate decentralized cryptocurrency transactions (which is doubtful), it is uncertain how agreement with it, which outlines the App Store's requirements for apps overseeing cryptocurrency transactions, creates an unlawful arrangement."
The plaintiffs now have 21 days from when the suit was filed to suggest alterations. These updates could persuade the court to reconsider the case before closing it officially. However, the tone of the judge's concluding comments in the filing suggests that the likelihood of changing the decision is slim. If the plaintiffs do not file an amended complaint within the specified timeline, the case will be dismissed with prejudice.
Published At
3/27/2024 10:40:00 PM
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