Apple has agreed to open its tap-and-go payments system to rivals in Europe, European Union antitrust regulator has said. This means that the iPhone maker will avoid the threat of fines by allowing rival wallet developers to use contactless mobile payments technology of Apple Pay for 10 years.
“The Commission has decided to accept commitments offered by Apple. These commitments address our preliminary concerns that Apple may have illegally restricted competition for mobile wallets on iPhones,” said European Commission EVP Margrethe Vestager, who heads up the EU’s competition division.
“Apple has until July 25 to implement their commitments. As of this date, developers will be able to offer a mobile wallet on the iPhone with the same ‘tap and go’ experience that so far has been reserved for Apple Pay,” she added.
What’s the Apple Pay investigation all about
In 2020, the EU launched an antitrust investigation, looking at the terms and conditions Apple sets for integrating Apple Pay in apps and websites. The probe concerned the ‘tap and go’ technology that uses Near-Field Communication (NFC) and alleged refusals of accessing Apple Pay.
Then in 2022, the EU Commission raised concerns that Apple Pay’s dominance on iPhones effectively excluded other mobile wallet providers, thereby restricting competition.
“Our preliminary finding was therefore that Apple abused its dominant position by refusing to supply the NFC technology to competing mobile wallet developers,” the Commission mentioned.
In the settlement, the EU accepted commitments offered by Apple over how it operates Apple Pay to end a long-running competition investigation. This means that iPhone users in the region will be able to use their preferred mobile wallet for payments in stores.
“They will be able to do so while enjoying all the iPhone’s functionalities, including tap-and-go, Double-Click and FaceID,” the Commission added.
Meanwhile, Vestager said the iPhone maker has yet to change its business practices to comply with the Digital Markets Act (DMA), which requires Big Tech to ensure a level playing field for rivals and give users more choice.
“The Commission has decided to accept commitments offered by Apple. These commitments address our preliminary concerns that Apple may have illegally restricted competition for mobile wallets on iPhones,” said European Commission EVP Margrethe Vestager, who heads up the EU’s competition division.
“Apple has until July 25 to implement their commitments. As of this date, developers will be able to offer a mobile wallet on the iPhone with the same ‘tap and go’ experience that so far has been reserved for Apple Pay,” she added.
What’s the Apple Pay investigation all about
In 2020, the EU launched an antitrust investigation, looking at the terms and conditions Apple sets for integrating Apple Pay in apps and websites. The probe concerned the ‘tap and go’ technology that uses Near-Field Communication (NFC) and alleged refusals of accessing Apple Pay.
Then in 2022, the EU Commission raised concerns that Apple Pay’s dominance on iPhones effectively excluded other mobile wallet providers, thereby restricting competition.
“Our preliminary finding was therefore that Apple abused its dominant position by refusing to supply the NFC technology to competing mobile wallet developers,” the Commission mentioned.
In the settlement, the EU accepted commitments offered by Apple over how it operates Apple Pay to end a long-running competition investigation. This means that iPhone users in the region will be able to use their preferred mobile wallet for payments in stores.
“They will be able to do so while enjoying all the iPhone’s functionalities, including tap-and-go, Double-Click and FaceID,” the Commission added.
Meanwhile, Vestager said the iPhone maker has yet to change its business practices to comply with the Digital Markets Act (DMA), which requires Big Tech to ensure a level playing field for rivals and give users more choice.