Apple Offers Sharing Tap-And-Go Payment Method With Competitors in EU Antitrust Dispute

As part of its concessions to resolve an antitrust probe by the European Commission, Apple has agreed to allow third-party mobile wallet and payment companies access to the iPhone's NFC capabilities. With NFC or Near Field Communication, two devices may establish a link at a distance of around 4 centimeters.

Currently, the EC is waiting for comments on the offers that would put an end to the monopoly that Apple Pay and Apple Wallet have on the NFC features of the iPhone. This is the most recent twist in the inquiry, which has been going on for over four years.

Proposal to Access NFC Payment Features

According to The Verge, the suggested pledges follow the Commission's formal accusation, made little more than 15 months ago, that Apple violated European Union regulations by limiting mobile payment competition via its iOS rules.

"The Commission takes issue with the decision by Apple to prevent mobile wallets app developers, from accessing the necessary hardware and software ('NFC input') on its devices, to the benefit of its own solution, Apple Pay," the agency said at the time.

Apple allows third-party app developers to use the NFC technologies of the iPhone in order to scan electronic tags, but the company limits the ability to make payments over NFC to its own software. The news that Apple will make its tap-to-pay tech available to competitors was originally reported by Reuters in December 2023.

In a statement made by Apple, which was shared with the Wall Street Journal, the company has been in talks with the EC and has promised to let third-party developers in Europe carry out a feature that allows users to make NFC contactless payments within their iOS apps, differing from Apple Pay and Apple Wallet.

Though the press release from the Commission fails to clarify what obligations apply to non-European third-party wallet developers or iPhone users, it does state that Apple's suggestions would enable European residents to use third-party apps outside of the bloc to make NFC payments.

Should Apple fail to live up to the proposed promises, which would be in effect for a period of ten years, the company might face a fine equal to 10% of its yearly global revenue.

Antitrust Probes Against Apple

The request for comments on the pledges follows a meeting between Apple CEO Tim Cook and Commission antitrust chief Margrethe Vestager in California last week, said The Verge.

In its antitrust investigations, the EU has focused on a number of Apple services, including Apple Pay. The EC has also taken a stand in support of Spotify, challenging App Store regulations prohibiting developers from promoting app subscriptions on platforms other than Apple's. Bloomberg previously reported that this year might see a definitive ruling, penalties, and prohibition on the practice.