Apple opens contactless payment access
Paying with a smartphone has become commonplace. However, Apple has limited the access of other service providers who wanted to use the NFC chip on iPhones. The EU Commission's threats of high fines are having an effect: Apple is giving in.
Apple avoids a high antitrust fine from the EU Commission in the dispute over Apple Pay. The EU's antitrust authorities have accepted Apple's concessions and thus put an end to a dispute that has been going on for years, according to a statement from the EU Commission in Brussels.
Apple promises other developers of mobile wallets and payment services free access to the NFC chip of its devices for contactless payment. The Commission had accused Apple of deliberately obstructing competition in the mobile payment sector. For example, if banks want to make their cards contactless on the iPhone, this could only be done via Apple Pay and Apple's own mobile wallet.
Banks have long criticized that they cannot access the NFC chip on the iPhone to use the phone instead of a bank card at the checkout. Apple explained that Apple Pay was the only way to do this for security reasons. The promises Apple is making are supposed to last for ten years.
If the EU Commission had considered Apple's concessions insufficient, Apple would have likely had to pay a high fine. If a company does not comply with the EU antitrust rules, the Commission can impose a fine of up to ten percent of the company's annual turnover.
However, there is still a dispute between Apple and the EU Commission. Recently, the Commission in Brussels stated in a preliminary statement that Apple violates the since March valid competition rules for digital companies with its App Store. Apple allegedly prevents App developers, such as Netflix or Spotify, from distributing their products via alternatives to the App Store. The business conditions for the App Store reportedly prohibit sellers from providing price information and closing subscriptions directly in the app. In this case, Apple faces billions in fines.
Apple agrees to provide unrestricted NFC access to third-party technology companies for mobile wallets and payment services in Europe, potentially avoiding a significant antitrust fine. The European Commission continues its investigation into Apple's compliance with competition rules in the App Store, alleging practices that restrict competitors like Netflix and Spotify.
