Brussels: 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. This move by Apple, which avoids a potential hefty fine, comes amidst ongoing scrutiny over its business practices under the Digital Markets Act (DMA), with three other investigations currently underway.
The European Commission, acting as the EU’s antitrust authority, confirmed that Apple’s commitment would extend for 10 years. This decision will allow more than 3,000 banks and issuers across Europe to offer their mobile payment solutions on par with Apple Pay.
“Competitors will now have the opportunity to compete directly with Apple Pay on iPhone devices for in-store mobile payments. This will offer consumers a broader selection of secure and innovative mobile wallets,” stated Margrethe Vestager, the EU’s antitrust chief.
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Apple’s near-field communication (NFC) technology, crucial for contactless payments through mobile wallets, will be accessible to developers who wish to integrate it into their payment apps for rival mobile wallet providers.
In addition to enabling tap-and-go payments, Apple’s offer includes provisions for developers in Europe to incorporate NFC technology into various applications, including car keys, closed-loop transit passes, corporate badges, home and hotel keys, merchant loyalty programs, rewards, and event tickets.
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The EU’s antitrust investigation initially accused Apple of stifling competition by restricting access to its tap-and-go technology for rival mobile wallet providers. Apple’s proactive settlement offer in January effectively circumvented potential fines and findings of wrongdoing.
Earlier this year, Apple incurred its first EU antitrust penalty, amounting to 1.84 billion euros, for allegedly impeding competition from Spotify and other music streaming services through App Store restrictions.
