Technology
Thursday, July 11th, 2024 1:41 pm EDT
Key Points
- Acceptance of Commitments: EU antitrust regulators have accepted Apple’s commitments to allow access to its tap-and-go payments technology for rivals, concluding a four-year investigation into potential competition restrictions by Apple Pay.
- Commitments and Benefits: Apple has committed to providing third-party developers access to NFC technology without fees, enabling key iPhone features like Face ID for competing payment wallets, and allowing users to set any wallet as the default option. These changes aim to enhance competition and benefit both competitors and consumers by opening up innovation and choice in the market.
- Implementation and Duration: Apple must implement these commitments by July 25, 2024. The changes, which will remain in effect for ten years, are designed to ensure that Apple cannot use its control over the iPhone ecosystem to exclude other mobile wallets, thereby maintaining secure and competitive payment options.
EU antitrust regulators concluded a four-year investigation into Apple’s mobile wallet practices by accepting commitments from the company to allow access to its tap-and-go payments technology to rivals. This resolution addresses concerns that Apple may have restricted competition with its Apple Pay system. The investigation, which began in 2020, scrutinized the terms Apple set for integrating Apple Pay into apps and websites and examined the company’s alleged refusal to allow access to its tap-and-go technology. In 2022, the European Commission found that Apple Pay’s exclusivity on iPhones could restrict competition. In response, Apple proposed several commitments, including allowing third-party developers access to NFC technology without fees, providing access to key iPhone features like Face ID for competing payment wallets, and permitting users to set any wallet as the default option.
Earlier this year, the European Commission tested these commitments to gather feedback, ultimately concluding that Apple’s final commitments sufficiently addressed the competition concerns. These commitments have been made legally binding, marking significant changes in how Apple operates within Europe. According to EU antitrust chief Margrethe Vestager, the commitments will prevent Apple from using its control over the iPhone ecosystem to exclude other mobile wallets, thus benefiting both competitors and consumers by fostering innovation and choice while maintaining secure payments. Apple must implement these changes by July 25, allowing developers to offer mobile wallets for iPhones using the tap-and-go technology. The commitments will remain effective for ten years.
Apple confirmed that developers in the European Economic Area will have the option to enable NFC contactless payments and various contactless transactions through Host Card Emulation-based APIs within their iOS apps. These changes will not affect Apple Pay or Apple Wallet directly. Vestager emphasized that the commitments would ensure that Apple can no longer limit market access for competing mobile wallets, thereby opening up the market for more innovation and consumer choice.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/11/apple-reaches-deal-with-eu-to-open-up-mobile-payments-system-to-rivals.html
