Apple Opens Mobile Payments System To Competitors, Settles EU Antitrust Probe

Apple Opens Mobile Payments System To Competitors, Settles EU Antitrust Probe

Apple has resolved a four-year-long EU antitrust investigation by agreeing to open its tap-and-go mobile payments system to competitors, EU regulators announced on Thursday. The decision averts a potential hefty fine for the tech giant, marking a rare move as Apple typically contests EU scrutiny of its business practices. Currently, Apple faces three separate investigations under the Digital Markets Act (DMA).

Under the settlement, Apple's offer to open its NFC technology, used in Apple Pay for contactless payments, will be valid for 10 years. This move is expected to allow more than 3,000 banks and issuers in Europe to offer competitive mobile payment solutions for iPhone users.

EU antitrust chief Margrethe Vestager highlighted that this decision will enable competitors to effectively compete with Apple Pay, providing consumers with a broader range of safe and innovative mobile wallet options.

Apple's NFC technology, previously restricted, will now be accessible for developers to integrate into payment apps for rival mobile wallet providers. The company's offer also extends to enabling tap-and-go payments for various functionalities within iOS apps, such as car keys, transit passes, corporate and home keys, loyalty programs, and event tickets.

The EU Commission had accused Apple two years ago of anti-competitive behavior for limiting access to its NFC technology for Apple Pay competitors. In January, Apple proposed a settlement to resolve the case, avoiding a fine and admitting wrongdoing.

Earlier in March, Apple received its first EU antitrust penalty of 1.84 billion euros for impeding competition from music streaming rivals like Spotify through App Store restrictions.