In a significant development, EU antitrust regulators have accepted commitments from Apple to allow access to its tap and go payments technology to rivals, effectively ending a four-year investigation. The decision comes after concerns were raised regarding potential competition restrictions related to mobile wallets on iPhones.
The European Commission formally launched an investigation into Apple Pay in 2020, focusing on the terms and conditions set by Apple for integrating Apple Pay in apps and websites. The probe also examined issues surrounding tap and go technology and alleged refusals of access to Apple Pay. In 2022, it was found that Apple Pay could limit competition by being the sole option for iPhone users.
Apple responded to the concerns by offering several commitments to alleviate antitrust worries. These commitments included granting third-party developers access to NFC technology without any charges, providing access to essential iPhone features like Face ID to competing payment wallets, and allowing users to designate any wallet of their choice as the default option.
Following Apple’s proposed commitments, the European Commission conducted market testing to gather feedback on the suggestions. Upon assessment, the commission concluded that Apple’s final commitments adequately addressed concerns regarding restrictions on third-party access to tap and go payments technology. These changes have now been made legally binding on Apple, with a deadline set for implementation by July 25.
EU antitrust chief Margrethe Vestager highlighted the significance of the commitments, stating that they bring about crucial changes in how Apple operates in Europe for the benefit of competitors and customers. The new regulations prevent Apple from using its control over the iPhone ecosystem to exclude other mobile wallets from the market. This move is expected to encourage competition, innovation, and choice while maintaining the security of payments.
Once the commitments are implemented, all developers will have the opportunity to offer mobile wallets for iPhones with tap and go technology. These commitments are expected to remain in effect for the next ten years, with no alterations to Apple Pay or the Apple Wallet following the investigation.
The acceptance of commitments from Apple by EU antitrust regulators marks a significant step towards fostering a more competitive and innovative marketplace for mobile payments in Europe. By addressing concerns and implementing changes that promote fair competition, Apple is set to benefit both competitors and consumers, ultimately leading to a more dynamic and diverse ecosystem for digital payments.
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