Apple gives in to the dispute with the EU Commission over its Apple Pay payment service. In the future, the group wants to give other providers direct access to its devices for contactless payments.
A years-long dispute between the EU and the iPhone company Apple is coming to an end: The US company is giving in to the dispute over the alleged abuse of its market power in the payment service Apple Pay and will no longer seal off its mobile payment service in the EU. Rather, Apple is now guaranteeing other developers of mobile wallets and payment services direct access to the NFC chip on its devices for contactless payments. This was announced by the EU Commission in Brussels.
Previously, access for other service providers was only possible via Apple Pay. The EU Commission therefore initiated a competition investigation against Apple in 2020 and officially accused the company of unfair competition in 2022.
The accusation: Targeted obstruction of other payment services
The EU Commission had accused Apple of deliberately hindering competition from mobile wallets. Banks could only make their cards usable for contactless payments on Apple’s iPhone via Apple Pay and Apple’s mobile wallet Wallet.
Banks have long criticized the fact that they cannot directly access the NFC chip without Apple. This chip allows you to use your smartphone instead of a bank card when paying at the checkout. Apple explained that Apple Pay was the only way to do this, citing security considerations, among other things.
Commitment from Apple for ten years
Apple’s commitments will remain in effect for ten years and will be monitored by a trustee. The European Union’s competition watchdogs now called on competitors and other affected parties to submit feedback. Apple is threatened with a high competition fine from the EU because of the accusation of foreclosure of its payment platform.