EU antitrust regulators have recently accepted commitments from Apple to allow access to its tap and go payments technology to rivals. This decision comes after a four-year investigation into concerns that Apple may have been restricting competition when it comes to mobile wallets on iPhones.
The European Commission formally launched an investigation into Apple Pay in 2020, specifically looking at the terms and conditions set by Apple for integrating Apple Pay in apps and websites. The probe also focused on concerns surrounding the tap and go technology and alleged refusals of access to Apple Pay. In 2022, it was found that Apple Pay could potentially restrict competition as it was the only option for iPhone users.
In response to the investigation, Apple offered several commitments to address the concerns raised by the EU. These commitments include allowing third-party developers access to NFC technology without any charges, providing access to key iPhone features like Face ID to competing payment wallets, and enabling users to set any wallet of their choice as the default option. These commitments have now been made legally binding on Apple.
The EU antitrust chief, Margrethe Vestager, highlighted the benefits of these commitments, stating that they bring important changes to how Apple operates in Europe. The changes will benefit competitors and customers by opening up innovation and choice while keeping payments secure. Apple can no longer use its control over the iPhone ecosystem to keep other mobile wallets out of the market, allowing for more competition and consumer choice.
Apple now has until July 25 to implement these commitments, after which all developers will be able to offer mobile wallets for iPhones with the tap and go technology. The commitments are set to remain in effect for ten years, ensuring that the changes brought about by Apple’s commitments will be long-lasting. It is important to note that there will be no changes to Apple Pay or the Apple Wallet following the conclusion of the probe.
The acceptance of Apple’s commitments by EU antitrust regulators marks a significant milestone in promoting competition and innovation in the mobile payments sector. By allowing rivals access to its tap and go technology, Apple is paving the way for a more competitive market landscape in Europe.
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