Due to Apple Pay, Apple has become the target of a lawsuit in the US.

The internet giant is accused of stifling competition from rival payment card issuers by utilising its dominant position in the mobile phone market.

An Iowa-based chartered credit union, Affinity Credit Union, filed the class-action lawsuit in a federal court in California. The BBC contacted Apple for comment, but they did not react right away.

Apple "coerces" users of its smartphones, smart watches, and tablets to use its own wallet for contactless payments, in contrast to manufacturers of Android-based devices that provide users a choice of wallets, such as Google Pay and Samsung Pay, the complaint claims.

According to the complaint, Apple forbids users from utilising competing mobile wallets that can provide competing tap and pay options.

The almost 4,000 banks and credit unions that utilise Apple Spend, according to Iowa's Affinity Credit Union, are compelled to pay at least $1 billion in extra fees each year as a result of Apple's anti-competitive behaviour. Additionally, it said that Apple's actions reduced the company's incentive to improve Apple Pay's functionality and make it more secure.

Affinity Credit Union stated that "Apple's conduct damages not only issuers but also customers and competition as a whole." 

"Apple could not maintain these high fees if there were competition."

Unspecified damages and an end to Apple's claimed anti-competitive behaviour are sought in the case.

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