Apple has agreed to open its iPhone’s tap-and-go payment system, NFC, to rival mobile payment providers, ending a four-year antitrust investigation by the European Union. This move, considered a settlement, will allow developers to build payment apps using Apple’s technology, giving consumers a wider range of mobile wallets to choose from.
The EU had threatened Apple with a hefty fine for hindering competition with its Apple Pay service by blocking rivals from accessing NFC. However, the company’s decision to settle the case marks a rare concession to EU pressure.
Apple’s offer includes allowing developers to integrate tap-and-go payments for various uses, including car keys, transit cards, and loyalty programs, beyond just financial transactions. The settlement is seen as a victory for the EU’s efforts to promote competition in the tech sector. It follows a previous fine of 1.84 billion euros imposed on Apple for antitrust violations related to its App Store practices.
This development could significantly impact the mobile payments landscape in Europe, as it opens up the iPhone ecosystem to more competition. It remains to be seen how this move will affect Apple’s own Apple Pay service and its future strategy for mobile payments.