Apple was recently under threat of substantial fines, potentially reaching $40 billion, due to its exclusive use of iPhone NFC technology for Apple Pay. To mitigate this, Apple agreed to open its NFC capabilities to other companies within the EU. This decision came after months of meticulous evaluation and consultations with various market players to verify the adequacy of Apple's commitments.
The European Union has endorsed Apple's response to antitrust issues regarding Apple Pay, resulting in iPhones now supporting rival companies' use of NFC technology.
Margrethe Vestager, the EU’s antitrust chief, declared that Apple’s commitments are now legally binding for the next ten years. Vestager commented, "This decision mandates Apple to grant access to its 'tap and go' technology, fostering a competitive environment by preventing the exclusion of other mobile wallets from the iPhone ecosystem. Consumers will benefit from a broader array of secure and innovative mobile payment options."
Apple's compliance includes several key changes: enabling Host Card Emulation (HCE) for online-stored payment credentials, lifting the requirement for developers to be licensed Payment Service Providers, allowing developers to prompt users to change their default payment app, and reducing the deadlines for dispute resolutions.
This EU decision is set to significantly alter the mobile payments sector, encouraging more consumer choice and driving innovation across the industry.
