Apple (NASDAQ:AAPL) has committed to granting competitors access to its tap-and-go mobile payment system, according to an announcement from the European Union on Friday. The move is part of Apple’s efforts to address an ongoing antitrust case and avoid a potential substantial fine.
As a resolution, Apple has put forth a proposal that would allow third-party mobile wallet and payment service providers to utilize the contactless payment feature within its iOS operating system, the EU reported. The European Union, comprising 27 member states, is currently soliciting feedback from various stakeholders before reaching a decision on the case.
The European Commission, which serves as the executive branch and chief enforcer of antitrust regulations within the bloc, accused Apple in 2022 of leveraging its dominant market position to limit access to its mobile payment technology. Brussels has been actively employing antitrust investigations and new digital legislation to curtail the influence of major tech companies, including Apple, with the goal of safeguarding consumer interests.
The specific allegation against Apple centered on the claim that the company was impeding competition by preventing developers of rival mobile wallet applications from accessing the near-field communication (NFC) technology integral to its Apple Pay system. This restriction, as per the EU, hindered these developers from offering competing services on Apple devices.
In the context of EU competition law, violations can result in fines amounting to up to 10% of a company’s annual global revenue. For Apple, this could potentially translate into tens of billions of euros or dollars.
To address the EU’s antitrust concerns, Apple’s proposed changes are designed to be in effect for a decade and would extend to rival mobile wallet makers and iOS users across the 27 EU member states, as well as Iceland, Norway, and Liechtenstein, according to the commission.
Apple clarified its position by stating that, through ongoing discussions with the commission, it has offered to empower developers of payment, banking, and digital wallet apps by providing an option for users to conduct NFC contactless payments from within their iOS apps, separate from the Apple Pay and Apple Wallet services.
Featured Image: Unsplash
Author Stephanie Bédard-Châteauneuf 
