Apple proposes opening iOS NFC payment system to avoid conflict in Europe

By allowing installation of applications outside of the App Store, Apple’s next step in Europe will be the opening of the NFC payment system.. Currently, such technology is limited to Apple Pay, so other financial institutions cannot use it. However, as part of the company’s efforts to comply with the antitrust rules of the old continent, this exclusivity may cease to exist.

In 2020, the European Commission launched an investigation against Apple for restricting developers from using the iOS NFC payment system. The agency believes that this ban restricts free competition, which violates the bloc’s antimonopoly legislation.

Two years later, Margrethe VestagerThe European Competition Commissioner has formally accused Apple. “We have indications that Apple has limited third-party access to key technologies needed to develop competing mobile wallet solutions on its devices. In our statement of objection, we tentatively established that Apple may have limited competition to benefit its own Apple Pay solution. If confirmed, such behavior would be illegal under our competition rules,” he said.

Apple, of course, defended itself by saying that its NFC payment system was limited by guaranteeing the privacy and security of its users: “Apple Pay is just one of many options available to European consumers to make payments, and it guarantees NFC parity.” access while setting industry-leading privacy and security standards.”

However, Cupertino residents were willing to cooperate with the European Commission to avoid a serious confrontation. Then the solution will come soon.

The proposal that Apple sent to the European Commission essentially consists of open the API (application programming interface) of the NFC payment system so that developers can integrate it into their applications. Thus, banking institutions can implement a system that competes with Apple Pay.

Obviously, This proposal is still awaiting approval. However, given that the move clearly solves Vestager’s main problem, there appears to be no problem for either side to reach an agreement. After closure, Apple will be able to avoid sky-high fines.

An important point is that the NFC payment system APIs will be available only to developers and companies registered in the European Union.

It is worth remembering here that the same measure can be implemented in the United States. A report appeared a couple of weeks ago New York Times expected that The North American Ministry of Justice has set its sights on Apple. Cause? Its own closed ecosystem of products and services.

One of the features they are testing is the iPhone’s NFC payment system. Authorities believe Apple’s blockade of this technology could harm financial institutions.

If the investigation establishes Apple’s guilt, the Justice Department will have enough evidence to bring a federal antitrust lawsuit against the California company.