Apple’s Decision to Allow Access to Payments on iPhones Resolves EU Competition Concerns
Apple’s Move to Open iPhone Payments Addresses EU Competition Concerns
Apple’s decision to open access to rivals for using standard technology in iPhone contactless payments, known as “tap and go,” has resolved competition concerns raised by the European Commission, the EU executive announced today (11 July).
The Commission’s investigation, initiated in June 2020, revealed that excluding Apple Pay’s competitors from the market could stifle innovation and limit choices for iPhone users of mobile wallets.
Apple was found to have abused its dominant position by restricting access to “near field communication” (NFC) technology, allowing only Apple Pay to utilize its hardware and software on iOS for in-store payments.
Previously, banks and other competitors had argued that being compelled to use software controlled by Apple was unfair.
In January, Apple proposed commitments to address these concerns, which were tested with feedback from banks and app developers in February. Subsequently, Apple enhanced its proposals to include measures such as enabling payments through competing apps on industry-certified terminals and facilitating easier selection of default payment apps by users.
EU Commission Vice President Margrethe Vestager, responsible for competition, emphasized in a press conference that these commitments are now legally binding under EU antitrust regulations.
“This decision promotes competition in a critical sector by preventing Apple from excluding other mobile wallets from the iPhone ecosystem,” Vestager stated. “Competitors will now have a fair opportunity to compete with Apple Pay for mobile payments in retail stores. Consumers will benefit from a broader selection of secure and innovative mobile wallet options.”
Apple has until 25 July to implement these commitments, which will remain in effect for the next decade. The Commission will monitor compliance, with potential penalties of up to 10% of Apple’s global annual revenue if commitments are breached.
