Apple Settles EU Case By Opening Its iPhone Payment System To Rivals

The European Commission has approved Apple's commitments to open its 'tap to pay' iPhone payment system to rivals, avoiding a potentially hefty fine. The Guardian reports: Regulators had accused Apple in 2022 of abusing its dominant position by limiting access to its mobile payment technology. Apple responded by proposing in January to allow third-party mobile wallet and payment service providers access to the contactless payment function in its iOS operating system. After Apple tweaked its proposals following testing and feedback, the commission said those 'final commitments' would address its competition concerns.

'Today's commitments end our Apple Pay investigation,' Margrethe Vestager, the commission's executive vice-president for competition policy, told a press briefing in Brussels. 'The commitments bring important changes to how Apple operates in Europe to the benefit of competitors and customers.' Apple said in a prepared statement that it is 'providing developers in the European Economic Area with an option to enable NFC [near-field communication] contactless payments and contactless transactions' for uses like car keys, corporate badges, hotel keys and concert tickets. Apple must open up its payment system in the EU's 27 countries plus Iceland, Norway and Liechtenstein by July 25.

'As of this date, developers will be able to offer a mobile wallet on the iPhone with the same 'tap-and-go' experience that so far has been reserved for Apple Pay,' Vestager said. The changes will remain in force for a decade and will be monitored by a trustee. Breaches of EU competition law can draw fines worth up to 10% of a company's annual global revenue, which in Apple's case could have amounted to tens of billions of euros.

Read more of this story at Slashdot.