Millions of UK iPhone Users Could Be Owed Compensation in Landmark £1.5 Billion Lawsuit
Millions of Britons could be eligible for compensation following the launch of a massive £1.5 billion legal action against technology giant Apple. The lawsuit, filed by prominent consumer campaigner James Daley, alleges that Apple imposed hidden fees through its Apple Pay service, which may have subtly increased everyday banking costs for consumers across the United Kingdom for years.
Allegations of Anti-Competitive Behaviour
The claim, lodged with the Competition Appeal Tribunal, accuses Apple of anti-competitive behaviour by essentially making Apple Pay the sole contactless payment service available to iPhone users in the UK for the past decade. Mr Daley, founder of the advocacy group Fairer Finance, argues that this dominance allowed Apple to impose fees on banks and card issuers.
These fees, according to the lawsuit, were subsequently passed on to consumers – not just iPhone owners, but potentially nearly everyone with a bank account in the country. The legal documents allege that Apple obstructed competing wallet providers by denying them access to the contactless payment technology on its iPhones.
Widespread Impact on Banking Customers
Mr Daley stated: “People will have no idea they’ve been paying more for everyday banking because of the way Apple has operated Apple Pay. By shutting out competition and charging hidden fees, Apple has pushed up costs for millions of consumers.”
He further explained the broad reach of the alleged impact: “Shockingly, this doesn’t just affect Apple Pay users or iPhone owners. Banks have passed these costs on to all customers, meaning everyone is paying the price.”
The case suggests these costs were absorbed into charges across a wide range of financial products, including:
- Current accounts
- Credit cards
- Savings accounts
- Mortgages
According to the filing, approximately 98% of consumers are exposed to banks that have listed cards on Apple Pay, indicating the vast majority of the UK population may have been affected. While individual compensation payouts could average around £26, Mr Daley emphasised that the principle of holding large corporations accountable matters as much as the monetary value.
Apple's Firm Rejection of the Claims
Apple has strongly rejected all allegations, describing the lawsuit as “misguided and should be dismissed.” In a detailed statement, the company defended its practices: “Apple Pay is a seamless and secure way for users to make contactless payments, and one of many payment options available to consumers. Apple does not charge fees to consumers or merchants for using Apple Pay, and banks see meaningful benefits from offering Apple Pay to their customers – most notably fraud reduction.”
The technology firm added that it had recently opened up new technical capabilities, including near-field technology and secure element application interfaces. This move allows third-party developers to enable contactless payments from their own apps, including in the UK market. Apple concluded: “We will continue to ensure that UK customers have access to the payment options of their choice in a safe and secure environment.”
Regulatory Scrutiny and Next Steps
The legal action emerges as regulators, including the Competition and Markets Authority and the Payments Systems Regulator, intensify their scrutiny of digital wallet services and the considerable power wielded by major technology corporations. The tribunal must now decide whether the case can proceed as a full class action – a decision that could place Apple firmly under legal examination and potentially open the door to compensation for millions of affected consumers across the United Kingdom.
