Apple to Open Mobile Payments System to Rivals, Concluding EU Antitrust Investigation

Apple has agreed to open its tap-and-go mobile payments system to competitors, ending a four-year antitrust investigation by EU regulators. This decision averts a potential hefty fine for the tech giant.

The move to settle the EU antitrust probe is notable for Apple, which has typically resisted the European Union’s scrutiny of its business practices. Currently, Apple faces three investigations under the Digital Markets Act (DMA).

The European Commission, serving as the EU’s antitrust enforcer, announced that Apple’s offer would be valid for ten years. Currently, over 3,000 banks and issuers in Europe provide Apple Pay services.

“Competitors will now be able to effectively compete with Apple Pay for mobile payments in stores using iPhones,” stated EU antitrust chief Margrethe Vestager. “This means consumers will have a broader range of safe and innovative mobile wallets to choose from.”

Apple’s near-field communication (NFC) technology, which facilitates contactless payments, will now be accessible to developers for creating payment apps for rival mobile wallet providers.

Apple’s offer includes enabling European developers to incorporate tap-and-go payments for various uses such as car keys, closed-loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and event tickets within their iOS apps.

The EU competition authority had previously accused Apple of stifling competition for its Apple Pay mobile wallet by preventing rival app developers from accessing its NFC technology.

In January, Apple proposed a settlement to avoid a fine and a formal finding of wrongdoing.

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