The European Commission, the EU’s executive arm and top antitrust authority, announced that it is accepting and legally binding the commitments Apple made earlier this year. In 2022, the commission accused Apple of abusing its dominant position by restricting access to its mobile payment technology.
In response, Apple proposed in January to allow third-party mobile wallet and payment service providers access to the contactless payment functionality in its iOS operating system.
After adjustments based on testing and feedback, the commission stated that these “final commitments” would address its competition concerns.
Margrethe Vestager, the commission’s executive vice-president for competition policy, said, “Today’s commitments end our Apple Pay investigation.” She added that the commitments bring significant changes to Apple’s operations in Europe, benefiting both competitors and customers.
The agreement provides more options for Europeans. iPhone users will be able to set a default wallet of their choice, and mobile wallet developers will have access to important iPhone verification features like Face ID. Mobile wallets depend on near-field communication (NFC), which uses a chip to communicate wirelessly with a merchant’s payment terminal.
Apple must implement these changes in the EU by July 25. Vestager stated, “As of this date, developers will be able to offer a mobile wallet on the iPhone with the same ‘tap and go’ experience that has been exclusive to Apple Pay.”
In a prepared statement, Apple said it is “providing developers in the European Economic Area with an option to enable NFC contactless payments and contactless transactions” for uses such as car keys, corporate badges, hotel keys, and concert tickets.
Violations of EU competition law can result in fines up to 10% of a company’s annual global revenue, which for Apple could amount to tens of billions of euros (dollars).
