As news emerged over the weekend that retail giants Rite Aid and CVS have decided not to accept mobile payment system Apple Pay in their stores, reports say Apple’s new product will likely reinvigorate retailers’ war against interchange fees.
Apple Pay, which officially launched on October 20, promotes itself as one of the most secure payment systems. Experts say it will likely become popular with consumers, but the fees charged to retailers for each transaction will not be taken likely with stores.
Since 1996 a group of major retailers including Walmart and Sears have combated such interchange fees through a class action against Visa and MasterCard, arguing that the swipe-fees harm competition. The credit card companies agreed to a $3 billion settlement in 2003, but litigation is ongoing as the Federal Reserve Board issued a cap on swipe-fees that some say was higher than intended when Congress set out to curb the transaction costs.
The ongoing conflict, some experts say, is likely to be exacerbated by Apple Pay and retailers’ blocking of the payment service. CVS and Rite Aid are both part of the Merchant Customer Exchange, which includes 58 of the nation’s largest retailers – including Walmart and Swears. Reports say MCX is preparing to launch its own competition to Apple Pay, known as CurrentC.
Full content: Computer World
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI