A UK class action lawsuit filed against Apple this week alleges the company unlawfully restricted competition in contactless payments. The suit claims Apple abused its dominant position by limiting third-party access to the iPhone's NFC chip and Secure Element, forcing banks to use Apple Pay. It seeks up to £1.5 billion in damages for an estimated 50 million UK consumers.

The complaint argues Apple Pay became the only viable mobile payment option for iPhone users in the UK since its 2015 launch. Banks were left with no alternative, and Apple reportedly charged issuing banks a 0.15% transaction fee. The suit contends these costs were passed to consumers through higher fees on current accounts, credit cards, and mortgages.

Apple called the lawsuit "misguided and should be dismissed," noting banks benefit from fraud reduction and that it doesn't charge consumers or merchants. The company also pointed to recent platform changes that now allow third-party developers NFC access in the UK. The Competition Appeal Tribunal must first decide if the case can proceed as a collective action.