Pierre et al v. Apple Inc.

Filing 49

Order by Judge Vince Chhabria granting 30 Motion to Dismiss. (vclc2, COURT STAFF) (Filed on 3/26/2024)

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

LAMARTINE PIERRE, et al.,

Case No. 23-cv-05981-VC

Plaintiffs,
ORDER GRANTING MOTION TO
DISMISS

v.

Re: Dkt. No. 30

APPLE INC.,
Defendant.

Apple’s motion to dismiss is granted.
As discussed more fully at the hearing, the complaint suffers from several fatal problems.
For one, the plaintiffs have not adequately alleged antitrust standing (and probably not even
Article III standing) given the speculative nature of the connection between the alleged
anticompetitive conduct and the plaintiffs’ injury. The relevant market definition is also
problematic for several reasons, most prominently because the complaint does not adequately
explain why peer-to-peer substitute apps like Zelle are excluded. Finally, it does not appear that
the plaintiffs’ have adequately alleged an agreement. The complaint alleges that Venmo, Cash
App, Apple Cash, and Google Pay all agreed to Apple Store Guideline 3.1.5. In doing so, the
complaint alleges, these apps entered into a horizontal agreement to prevent payment apps from
implementing decentralized cryptocurrency transactions. Even assuming that Guideline 3.1.5
restricts decentralized cryptocurrency transactions (which seems doubtful), it is not clear how
companies agreeing to a guideline outlining the Apple Store requirements for apps facilitating
cryptocurrency transactions constitutes an unlawful agreement under Section 1 of the Sherman
Act.

The plaintiffs should not assume that the defects mentioned in this ruling are the only
ones in the complaint. Apple’s motion to dismiss has put them on notice of many more potential
problems. Indeed, it is difficult to see how amendment could salvage this case. But, in an
abundance of caution, the motion to dismiss is granted with leave to amend. If no amended
complaint is filed within 21 days of this ruling, dismissal will be with prejudice.

IT IS SO ORDERED.
Dated: March 26, 2024
______________________________________
VINCE CHHABRIA
United States District Judge

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