Apple has agreed to open up its mobile payments technology to avoid a fine from the European Commission. Recent reports indicate that Cupertino will offer NFC to third parties to resolve the investigation initiated by the regulator.
In accordance with Reuters, Apple will open up the iPhone’s NFC chip to Apple Pay competitors. The tech giant agreed to offer the technology “click and go” third parties, which offers contactless payments using digital wallets. NFC has been the center of contention for four years, with the European Commission accusing Cupertino residents of anti-competitive practice of restricting NFC in its payment system.
In May 2022, the highest authority The EU sent a statement of objection to the closure of NFC to competitors from Apple Pay. It said Apple abused its dominant position in mobile wallet markets for iOS devices. According to the European Commission, Apple violated an article of the Treaty on the Functioning of the EU by limiting the options available to consumers.
“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 conduct would be unlawful under our competition rules.”
Two years later, Apple is ready to close this shameful chapter. Times are changing, and new regulations such as the Digital Markets Act are aimed at limiting the influence of Big Tech. Apple does not want new fines and since January has proposed opening its technology to third parties for access to NFC iPhones and Apple Watches.
The tech company will also offer the default use of payment apps or authentication systems such as Face ID. Apple’s offer will be valid for 10 years. and will only apply in the countries of the European Union.
Apple opens up NFC to avoid another Spotify coming to Europe
Although Apple announced NFC and alternative payment methods in January, the truth is that these changes have not been well received. Companies such as Microsoft, Spotify and Epic Games have criticized these proposals, in particular the one that forces companies to pay 0.5 euros for each installation of their applications if they exceed one million downloads.
In the case of NFC, the European Commission asked competitors and Apple Pay customers to give their views on Apple’s concessions. Having received them, the regulator asked the technology company to adjust the conditions for access to NFC and submit a proposal. Close sources assure that this has already been done, so all that remains is for the Commission to approve them in May next year.
With the discovery of NFC, Apple will avoid a million-dollar fine equivalent to 10% of its annual revenue. A few weeks ago, the European Union fined Apple €1.84 billion for harming services like Spotify. The regulator pointed out Apple’s monopolistic practices by preventing music streaming platforms from informing iPhone users that alternatives and cheaper options are available outside the App Store.
“The fine should be sufficient to deter Apple from repeating the same or similar violations, and also to send a signal to other companies with the same resources not to commit similar acts,” said Margrethe Vestager, executive vice president and European Commissioner for Competence.
Source: Hiper Textual
I’m Ben Stock, a highly experienced and passionate journalist with a career in the news industry spanning more than 10 years. I specialize in writing content for websites, including researching and interviewing sources to produce engaging articles. My current role is as an author at Gadget Onus, where I mainly cover the mobile section.
