Thursday, October 31, 2024

Apple Reaches Deal with EU Regulators to Open Up Mobile Payments System to Rivals

Date:

  • Apple will now permit third-party access to its NFC tap-and-go payment technology.
  • The agreement addresses EU antitrust concerns about restricted competition in mobile wallets.
  • The European Commission’s binding commitments ensure a more open market for competitors and consumers.

In a significant development, Apple has reached an agreement with EU antitrust regulators to open its NFC tap-and-go payment technology to rival companies. This decision concludes a four-year investigation initiated in 2020, which scrutinized Apple’s terms for integrating Apple Pay and its restrictive access to contactless payment technology.

Margrethe Vestager, EU antitrust chief, announced that the European Commission accepted Apple’s commitments to address preliminary concerns about restricted competition in mobile wallets on iPhones. The investigation had identified potential anti-competitive practices, as Apple Pay was the sole mobile wallet option available to iPhone users.

Commitments and Changes

Apple has committed to several measures to open up its technology. These include:

  • Allowing third-party developers access to NFC technology without additional charges.
  • Providing access to key iPhone features, such as Face ID, to competing payment wallets.
  • Allowing users to set any wallet of their choice as the default option.

Earlier this year, the European Commission market-tested Apple’s proposals to gather feedback. After assessment, it concluded that Apple’s final commitments adequately addressed the concerns about restricting third-party access to tap-and-go technology. These commitments are now legally binding and are set to remain in effect for ten years. Apple has until July 25 to implement these changes.

Apple details how it's preventing non-EU users from accessing iOS 17.4's  expanded app ecosystem - Supercharged

Impact on Developers and Consumers

Vestager emphasized that these changes would benefit both competitors and consumers by fostering innovation and providing more choices in mobile wallets while maintaining secure payments. Apple confirmed that there would be no changes to Apple Pay or the Apple Wallet as a result of the probe. Instead, developers in the European Economic Area will have the option to enable NFC contactless payments and other transactions using Host Card Emulation (HCE) based APIs within their iOS apps.

Stock Market Implications

This agreement with EU regulators may have significant implications for Apple’s stock market performance. Opening its NFC technology to competitors could potentially increase market competition, leading to more innovative solutions and better consumer options. Investors will likely watch closely how this regulatory development affects Apple’s market position and consumer trust.

By staying compliant with regulatory requirements and opening up its technology, Apple aims to maintain its reputation and market share in the European Economic Area, potentially influencing its global operations and market strategy.

Speech by Executive Vice-President Vestager on the Single Market Emergency  Instrument - PubAffairs Bruxelles

Conclusion

Apple’s commitment to allowing third-party access to its NFC tap-and-go technology marks a significant shift in its business practices in Europe. This move addresses regulatory concerns, promotes market competition, and ensures that consumers benefit from increased innovation and choice in mobile payment solutions. As the company implements these changes, the stock market and the tech industry will be keenly observing the outcomes and their broader implications.

+ posts

Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website. He then contributed to building Guerilla Capital, a Capital Markets company and FirstPhase Capital where he was head of research. At10xAlerts, he writes articles and conducts interviews on many sectors, including breaking news technology, metals & mining markets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_img

Popular

More like this
Related

SMCI, Should We Call 911?

 Today, Super Micro Computer experienced a striking 32% drop...

Mining for Success: The Promising Futures of Element79 and Galloper Gold

For those who have been living under a rock....

Why NurExone Could Be the Next Big Biotech Opportunity

Hey everyone! If you're exploring new investment opportunities for...

An Undervalued Biotech Showing Promise

Once you review this piece, consider buying or watch...