Nandini Roy Choudhury, writer
News in brief
- EU antitrust regulators have accepted Apple’s commitments to grant rivals access to its touch and go payments technology, resolving concerns about competition in the mobile wallet market.
- Apple has pledged to provide third-party developers with access to NFC technology without charge, allow competing payment wallets access to key iPhone features, and allow users to choose their preferred wallet as the default option.
- The commitments bring significant changes to Apple’s operations in Europe, benefiting customers and competitors, and will be in force for a period of ten years. Apple Pay and the Apple Wallet will remain unchanged.
News in details
A four-year investigation was concluded on Thursday when EU antitrust regulators accepted Apple’s assurances to grant rivals access to its touch and go payments tech.
“Apple’s commitments have been accepted by the commission.” The EU antitrust chief, Margrethe Vestager, stated during a press conference that these commitments resolve our preliminary concerns that Apple may have unlawfully constrained freedom in the area of mobile wallets on iPhones.
In 2020, the European Union initiated a formal investigation into Apple Pay. Apple’s terms and conditions for incorporating Apple Pay into applications and websites, as well as allegations of refusals to access Apple Pay and concerns regarding the tap and go technology, were examined in the investigation.
In 2022, the European Commission determined that Apple Pay could potentially impede competition due to its exclusivity for iPhone users. Apple has since proposed a number of commitments to resolve the concerns, and in January, it offered to provide its competitors with access to its mobile wallet and contactless transaction technology.
According to Vestager, Apple has pledged to grant third-party developers access to NFC technology without charging them, to grant competing payment wallets access to key iPhone features such as Face ID, and to enable users to designate any wallet of their choosing as the default option.
The European Commission conducted a market test of Apple’s commitments to gather consumer input regarding the proposals initially this year. The commission came to the conclusion that Apple’s final commitments resolve concerns regarding the tech giant’s restrictions on granting external entities access to its tap and go payments technology after conducting its assessment. Apple is now legally obligated to implement the modifications.
“The commitments bring significant changes to the way Apple operates in Europe, which benefits customers and competitors,” stated Vestager.
She further stipulated that “Apple no longer able to prevent the entry of other mobile wallets into the market by exerting its control over the iPhone ecosystem.” “These changes will benefit both consumers and competing wallet developers, as they will facilitate technological advancement and preference while ensuring the security of payments.”
Vestager stated that the iPhone manufacturer possesses till July 25 to execute the obligations. She elaborated that all developers will be able to provide mobile wallets for iPhones with the touch and go technology. The commitments are expected to be in force for a period of ten years.
According to Apple’s email feedback, developers in the European Economic Area have the choice of allowing NFC contactless payments and contactless transactions for car keys, closed loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and event tickets from within their iOS applications using Host Card Emulation-based APIs.
In the wake of the investigation, it was made clear that Apple Pay and the Apple Wallet would remain unmodified.
Source : CNBC News
