Apple Faces Legal Battle Over Alleged Conspiracy to Suppress Decentralized Cryptocurrency Apps

Apple is at the heart of a legal battle that was launched in a California District Court on November 17. According to the lawsuit, Apple colluded with prominent payment systems, such as Block’s Cash App and PayPal’s Venmo, to restrict the use of decentralized bitcoin technology in iOS payment apps.

According to the complaint, these agreements have reduced market competition and made it more difficult for new and current iOS Peer-to-Peer (P2P) Payment apps to integrate decentralized bitcoin technology. Due to Apple’s purported manipulation, consumers now pay higher costs as a result of reduced feature and price competition.

Apple’s Tight Grip on the Market

The document provides insight into how Apple uses contractual and technical leverage to control the majority of apps on its devices. This includes limitations on web browser technology and hardware-enforced App Store exclusivity, which are purportedly used by Apple to set rules for new iOS P2P payment apps, frequently excluding cryptocurrency alternatives as a prerequisite for release.

Representing customers affected by Apple’s purported anti-competitive actions, the plaintiffs want damages for extortionate costs brought on by trade restrictions in the iOS P2P payment industry. They also seek a court order to stop Apple from entering into and upholding contracts that hurt both current participants and prospective newcomers in this sector by stifling competition.

This lawsuit comes after the Ninth Circuit Court of Appeals found in April that Apple had broken California’s antitrust rules by preventing its apps from sending customers to third-party payment processors.

For cryptocurrency startups, Apple’s strict policies—which demand that developers give up to thirty percent of transaction earnings—have presented difficulties. This covers companies that sell non-fungible tokens (NFTs), who have had difficulty providing useful services to iOS consumers. Notably, Damus, a social media program that accepts Bitcoin, was taken down by Apple from the program Store due to a violation of its rules of service.

The continuous conflict between tech companies and the bitcoin ecosystem is highlighted by the legal dispute, which may have repercussions for how decentralized money is incorporated into iOS applications moving forward.