Apple (NASDAQ: AAPL) has committed to finally opening up its tap-and-go payments technology to rival payment services in the European Union, caving after a multi-year probe by the region’s antitrust authority.
On July 11, the tech giant made legally binding commitments to the European Commission, pledging to allow payment services to use its near-field communication (NFC) technology for free.
For years, NFC technology, which powers iPhones’ contactless payments, was only available on Apple Pay, the company’s payment service. In 2020, the EU launched a probe into the service, alleging that the company was abusing its dominant position by denying NFC access to rival solutions.
Earlier this year, Apple softened its stance and pledged to allow third-party wallet providers to access this technology free of charge. It also pledged to open up its walled garden and avail of other technology, such as Field Detect, which launches the default app when an iPhone accesses an NFC reader. Finally, it allowed users to set other third-party solutions as their default payment apps—previously, this option was restricted to Apple Pay.
The European Commission has now made these pledges legally binding for the California company.
“The commission has decided to accept commitments offered by Apple. These commitments address our preliminary concerns that Apple may illegally have restricted competition when it comes to mobile wallets on iPhones,” commented Margrethe Vestager, the region’s antitrust chief.
Apple has long been accused of abusing its dominant position to suppress competition. Last week, India’s antitrust body concluded that the firm engaged in “abusive conduct and practices” through its iOS app store. The watchdog has been investigating the iPhone makers since 2021.
In the EU, authorities forced Apple’s hand in the latest fight by threatening to impose 10% of the company’s annual turnovers as a fine. This would have cost the company $40 billion.
“From now on, Apple can no longer use its control over the iPhone ecosystem to keep other mobile wallets out of the market. Competing wallet developers, as well as consumers, will benefit from these changes, opening up innovation and choice, while keeping payments secure,” Vestager added.
While it may have put this antitrust charge behind it, Apple still faces three other probes under the EU’s Digital Markets Act. This framework is geared towards taming monopolies and allowing local players to compete with global behemoths. Other companies under investigation include Meta (NASDAQ: META), Google (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN).
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