Excerpt from Times of India Article, Published on July 12, 2024
Apple has avoided fines from the EU by agreeing to open its contactless payment system to rivals, addressing the European Union’s antitrust concerns. The agreement means that for the next 10 years, rival wallet developers can use Apple Pay’s contactless mobile payments technology. The European Commission had raised concerns in 2022 about Apple Pay’s dominance on iPhones, which effectively excluded other mobile wallet providers and restricted competition.
European Commission EVP Margrethe Vestager, who leads the EU’s competition division, said, “The Commission has decided to accept commitments offered by Apple. These commitments address our preliminary concerns that Apple may have illegally restricted competition for mobile wallets on iPhones.”
Apple has until July 25 to implement these commitments, enabling developers to offer a mobile wallet on the iPhone with the same ‘tap and go’ experience that was previously exclusive to Apple Pay. Vestager added that iPhone users in Europe would be able to use their preferred mobile wallet for in-store payments, enjoying all iPhone functionalities such as tap-and-go, Double-Click, and FaceID.
The EU’s preliminary finding indicated that Apple abused its dominant position by refusing to supply the technology needed for other mobile wallets to compete effectively. This settlement ends a long-running competition investigation, ensuring a level playing field for rivals and giving users more choice.
Despite this agreement, Vestager mentioned that Apple has yet to change its business practices to comply fully with the EU’s regulations. The commitment by Apple marks a significant step towards addressing the EU’s antitrust threat and promoting fair competition in the mobile payments market.
The outcome highlights the importance of regulatory scrutiny in maintaining competitive markets and protecting consumer interests in the tech industry.
To delve deeper into this topic, please read the full article on Times of India.