- Apple has agreed to open its tap-and-go mobile payments system to competitors and will allow developers access to its near-field communication (NFC) technology for the next ten years.
- This agreement ensures fair competition in the digital payments market, offering consumers more choices and better services while providing developers and competitors the opportunity to innovate and compete more equally.
OUR TAKE
Apple’s recent decision to grant third-party access to its near-field communication (NFC) technology marks a pivotal moment in promoting fair competition within the digital payments market. Its compliance with the EU’s directives exemplifies the critical balance between regulatory oversight and market innovation.
–Ashley Wang, BTW reporter
What happened
Apple has agreed to open its tap-and-go mobile payments system to competitors, presenting the end of a four-year antitrust investigation by the European Union. This rare concession by Apple comes as it faces increasing scrutiny under the EU’s Digital Markets Act(DMA), with three ongoing investigations into its business practices.
The European Commission, the EU’s antitrust authority, announced that Apple’s offer to allow access to its near-field communication (NFC) technology will be valid for ten years. Apple’s NFC technology, essential for contactless payments, will now be accessible to developers, enabling them to pre-build payment apps for rival mobile wallet providers. This decision aims to foster competition and innovation in the mobile payments market. Currently, over 3,000 banks and issuers in Europe support Apple Pay. EU antitrust chief Margrethe Vestager stated, “From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. “
The investigation began two years ago when the EU accused Apple of hindering competition by blocking rival app developers from accessing its technology. In January, Apple offered to settle the case, which helped avoid a potential fine and a formal finding of wrongdoing.
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Why it’s important
This move is a significant step towards ensuring fair competition in the digital payments market. By allowing third-party access to its NFC technology, Apple is addressing the EU’s competition concerns and potentially averting future penalties. This decision is part of a broader trend where tech giants are increasingly being held accountable for their market practices, ensuring a more level playing field for all participants in the industry.
For consumers, this means more choices and potentially better services in the mobile payments space. For developers and competitors, it represents an opportunity to innovate and compete on a more equal footing. This development underscores the EU’s commitment to maintaining competitive markets and protecting consumer interests.
