Venmo and Cash App’s Antitrust Case Against Apple Falls Flat in Court

Maxwell Mutuma
March 28, 2024
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Highlights

  • Judge Chhabria dismisses antitrust lawsuit against Apple.
  • Plaintiffs accuse Apple Cash of anticompetitive practices.
  • The court finds insufficient evidence of antitrust violations.

In a court ruling, a United States District Judge, Vince Chhabria, threw out an antitrust lawsuit against Apple. The lawsuit brought by the customers of the Venno and Cash app argued that Apple Cash employed Anticompetitive practices. The lawsuit was filed on November 17, 2023, in San Jose, and it charged Apple with monopolistic practices through the iOS App Store. The plaintiffs claimed Apple prevented rivals from incorporating novel features such as decentralized cryptocurrency payments.

The complaint claimed that Apple’s App Store policies stop services like Venmo and Cash App from providing attractive pricing and improved functionalities. These restrictions deprived benefits of iOS end users, as alleged by plaintiffs. Yet the court held that the lawsuit did not have considerable evidence of violations of antitrust. Judge Chhabria emphasized several problems with the plaintiffs’ claims, such as their failure to identify Apple’s antitrust actions.

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Apple App Store Guidelines Upheld in Court

The case filing stated that the lawsuit was defective because of the speculative claims and flawed premises. The court asked why competitors like Zelle, who are operating in the same market, have not been mentioned in the allegation. It also disregarded the relevance of Guideline 3.1.5 of the App Store Terms of Service, which the plaintiffs claimed was an obstacle to integrating cryptocurrency functions in their products. The judge has refused the guideline’s adequacy for the allegations of the suit.

The ruling of Judge Chhabria stressed the inability of the plaintiff to show how following App Store guidelines amounted to an illegal agreement. The dismissal casts question upon the likelihood of success of any amendments that the plaintiffs may proffer. The court’s filing shows that the plaintiffs’ claims have been thoroughly examined and that Apple’s App Store policies have been comprehensively scrutinized.

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Plaintiffs Given 21 Days to Amend Lawsuit

The plaintiffs now have 21 days to respond to the court’s concerns by altering their suit. It creates a window for them to work on their arguments and maybe resurrect the lawsuit. The dismissal with leave granted order of the court is a prudent approach, since it does not preclude the possibility of a legal issue that was overlooked.

Nevertheless, the last words of the judge in the motion suggest the challenge that awaits the complainants. With several issues flagged by Apple’s motion to dismiss, the road to amendment of the complaint seems too long. The direction of the court indicates that substantial changes are needed to meet the preliminary objections and advance the case.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.