- 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.
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.
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.
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.
