EU Commission on Apple Pay: Brussels accuses Apple of violating competition

Status: 05/02/2022 1:29 p.m

Apple is threatened with high antitrust fines in the EU. The EU Commission sees indications that competitors are being restricted when making mobile payments with iPhones. The US group abuses its market power.

According to preliminary investigations by the EU Commission, the US company Apple is violating European competition regulations. The company is accused of restricting access to a standard technology for contactless payments with mobile devices and thus restricting competition in the field of mobile wallets in favor of its own Apple Pay solution, the authority said.

The EU Commission informed the US technology giant of its preliminary view “that the company has abused its dominant position in the markets for mobile wallets on iOS devices”. iOS is Apple’s operating system.

No alternatives to Apple Pay on iPhones

Specifically, it is about the allegation that owners of iPhones can only use Apple Pay for payment transactions and not offers from alternative providers. The Commission had already initiated the procedure in June 2020.

“For the integration of the European payments markets, it is important that consumers reap the benefits of a competitive and innovative market environment,” said EU Competition Commissioner Margrethe Vestager.

Evidence of Access Restrictions

However, there is now evidence that Apple has restricted third-party access to key technologies needed to develop competing mobile wallets for Apple devices. “Such behavior would be a violation of our competition rules,” Vestager said.

Apple now has the opportunity to comment on the complaints. If the Commission then sticks to its assessment, it could open formal antitrust proceedings. The group could then face a high fine.

Imminent fine for Apple

If companies breach EU competition rules, they risk fines of up to 10% of their annual global turnover. Banks, among others, have long seen themselves at a disadvantage when it comes to contactless payments on the iPhone. Above all, they criticize the fact that Apple cannot access the NFC radio chip, which allows you to use the phone at the checkout instead of a bank card.

Apple Pay is the only way to get access to the NFC chip on iPhones. Apple sees this as a technical solution to ensure payment security and ensures that anyone who wants access to Apple Pay will get it.

With the submission of the objections, the EU Commission is pushing ahead with further proceedings against Apple. Last year she had officially accused Apple of unfair competition in its app store on iPhone and iPad. Accordingly, Apple disadvantages other providers of music streaming apps and therefore has to fear a penalty.

source site