Apple has made a commitment to allow competitors access to its tap-and-go mobile payment system, according to the European Union. This move comes as the tech giant seeks to resolve an antitrust case and avoid potential fines that could reach into the billions.
The EU disclosed that Apple has proposed granting third-party mobile wallet and payment service providers access to the contactless payment function on its iOS operating system. The 27-nation bloc is currently inviting feedback from all interested parties before making a final decision on the matter.
In 2022, the European Commission accused Apple of abusing its dominant position by restricting access to its mobile payment technology. Brussels has been utilizing antitrust cases and new digital laws as a means to curb the power of tech giants like Apple and protect consumers.
The commission argued that Apple's actions hindered competition by preventing developers of rival mobile wallet apps from using the near-field communication (NFC) technology utilized by Apple Pay. Consequently, these developers were unable to offer competing services on Apple devices.
Violations of EU competition law may result in fines of up to 10% of a company's annual global revenue. For Apple, this could potentially amount to tens of billions of euros.
To address the concerns raised by the EU, Apple's proposed changes would be in effect for a decade and would extend to both rival mobile wallet makers and iOS users across the bloc's 27 countries, as well as Iceland, Norway, and Liechtenstein.
In ongoing discussions with the commission, Apple has offered developers of payment, banking, and digital wallet apps the option for their users to make NFC contactless payments from within their iOS apps. This option would be separate from Apple Pay and Apple Wallet.
