Key Insights
- EU antitrust regulators accept Apple’s commitments to open up its tap-and-go payment technology to rivals.
- Apple agrees to allow third-party access to NFC technology and key iPhone features for competing wallets.
- The company has until July 25 to implement changes, with commitments binding for 10 years.
BRUSSELS (MarketsXplora) – European Union antitrust regulators on Thursday accepted commitments from Apple Inc to open up its tap-and-go payment technology to rivals, concluding a four-year investigation into the tech giant’s mobile wallet practices.
EU antitrust chief Margrethe Vestager announced the decision during a press conference, stating, “These commitments address our preliminary concerns that Apple may illegally have restricted competition when it comes to mobile wallets on iPhones.”
The investigation, formally launched in 2020, scrutinized Apple’s terms and conditions for integrating Apple Pay in apps and websites, as well as concerns over the company’s Near Field Communication (NFC) technology and alleged refusals to grant access to Apple Pay.
In 2022, the European Commission found that Apple Pay could restrict competition by being the only mobile wallet option for iPhone users. Apple responded by proposing several commitments, including offering rivals access to its contactless payment and mobile wallet technology in January.
Vestager elaborated on Apple’s commitments, which include allowing third-party developers access to NFC technology without charges, providing access to key iPhone features like Face ID for competing payment wallets, and enabling users to set any wallet as their default option.
Following a market test of Apple’s proposals earlier this year, the Commission concluded that the final commitments adequately address concerns regarding restrictions on third-party access to Apple’s tap-and-go technology. These changes are now legally binding for Apple.
“The commitments bring important changes to how Apple operates in Europe to the benefit of competitors and customers,” Vestager said.
She added that the changes would open up innovation and choice while maintaining payment security.
Apple has until July 25 to implement the commitments, which will remain in effect for ten years. Vestager confirmed that all developers will then be able to offer mobile wallets for iPhones with tap-and-go technology.
In response, Apple stated via email that it would provide developers in the European Economic Area with an option to enable NFC contactless payments and transactions for various services using Host Card Emulation based APIs. The company added that there would be no changes to Apple Pay or the Apple Wallet following the probe.
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