Millions of UK consumers may be eligible for financial compensation following a landmark £1.5 billion class action lawsuit filed against Apple. The case, submitted to the Competition Appeal Tribunal, alleges the company used anti-competitive practices through its Apple Pay service, leading to increased costs across the banking system.
Consumer rights advocate James Daley, founder of Fairer Finance, is spearheading the legal action. According to Daley, Apple’s conduct over the past decade has led to unfair charges that banks have passed on to nearly all UK account holders, regardless of whether they use an iPhone or Apple Pay.
Allegations of Anti-competitive Behaviour Linked to Apple Pay
The lawsuit, filed in January 2026, accuses Apple of effectively locking out competition by restricting access to the iPhone’s contactless payment technology. According to Daley, Apple Pay has been the only contactless wallet option available to iPhone users in the UK for the past ten years. This, he claims, has allowed Apple to charge fees to banks and card issuers without providing a viable alternative to consumers.
Apple is said to have denied other developers access to near-field communication (NFC) technology, which is required for contactless payments on iPhones. According to the claim, these fees were not absorbed by the banks, but instead passed along to customers in the form of higher charges on products such as current accounts, credit cards, savings and mortgages.
According to reports by multiple sources, including Personal Finance, around 98 percent of UK consumers are connected to banks that have listed cards on Apple Pay. As a result, Daley argues, the vast majority of the UK population has indirectly borne the cost of Apple’s practices, even if they have never used an iPhone or Apple Pay themselves. He stated, “By shutting out competition and charging hidden fees, Apple has pushed up costs for millions of consumers.”
Apple Rejects Claims as Regulators Increase Scrutiny
Apple has strongly denied the allegations, describing the lawsuit as “misguided and should be dismissed.” In a statement responding to the legal action, the company said: “Apple Pay is a seamless and secure way for users to make contactless payments, and one of many payment options available to consumers.”
The company further stated that it does not charge fees to consumers or merchants for using Apple Pay, and that banks benefit from reduced fraud rates by offering the service. Apple also pointed to recent technical changes, noting it had opened up NFC and secure element interfaces to third-party developers in the UK, steps that could allow greater competition in the future.
According to the Competition and Markets Authority and the Payments Systems Regulator, digital wallet services like Apple Pay are now under increased scrutiny as regulators assess the influence of major technology firms on consumer choice and financial services.
The tribunal will now assess whether the lawsuit can proceed as a full class action. If approved, it could lead to payouts for more than 50 million consumers, although the average compensation per person may be around £26. Daley emphasised that the case is about fairness as much as financial redress: “I’m bringing this claim because consumers have been treated unfairly, and I want to help them get back what they’re owed.”
