US Tech Corporation - Dispute over payment system: Apple avoids EU antitrust penalty
The Technology giant Apple escapes a hefty antitrust penalty from the EU Commission. The antitrust complainants of the EU accept concessions from the US company and put an end to a long-standing dispute about Apple Pay, as stated in a press release from the EU Commission in Brussels. Apple grants other developers of mobile wallets and payment services free access to the NFC chip of its devices for contactless payments.
The Commission had accused Apple of deliberately obstructing competition in the mobile wallet sector. For instance, if banks want to make their cards contactless payment-enabled on the iPhone, they could only do so through Apple Pay and Apple's proprietary mobile wallet.
Banks have long criticized that they cannot access the NFC radio chip directly, which allows the phone to be used instead of a bank card at the cash register. Apple argued that Apple Pay was the only way to do this due to security considerations. The offered concessions are supposed to last for ten years.
If the EU Commission had considered the concessions from Apple insufficient, the company would have likely had to pay a hefty fine. If a company fails to comply with EU antitrust rules, the Commission can impose a fine of up to ten percent of the company's annual turnover.
- The European Union, recognizing the importance of a fair payment system, closely scrutinized Apple's practices related to Apple Pay.
- The European Commission, in light of the advances in NFC Technologies, believed that competitors should also have equal access to contactless payment capabilities on Apple devices.
- The technology giant, Apple, recognizing the potential for Competition Penalty if it did not make concessions, agreed to allow other payment system developers to use its NFC chip for contactless payments on iPhone and other devices.
- In efforts to boost competition in the mobile wallet sector, the European Union welcomed Apple's decision to open up its NFC technology to other developers, as this move aligns with the principles of a fair and competitive market.
- Based in Brussels, the European Commission, with a focus on ensuring fair competition, will closely monitor Apple's implementation of the agreed concessions to ensure compliance with EU antitrust rules and fostering a vibrant and unbiased technology market across Europe.
