The EU has given the green light to Apple’s proposal to grant competitors access to the iPhone’s tap-to-pay feature in the European Union, putting an end to a lengthy investigation and avoiding a hefty penalty. This move stems from a 2022 accusation by Brussels against Apple for hindering competitors from using the ‘tap-as-you-go’ iPhone payment system, breaching EU competition regulations.
Apple has now agreed to allow rivals to utilize the ‘tap and go’ technology on iPhones, with the EU competition chief, Margrethe Vestager, emphasizing the significance of this decision. This decision ensures that competitors can now compete with Apple Pay for mobile payments using iPhones in stores, offering consumers a wider array of secure and innovative mobile wallets to choose from.
Previously, Apple was found to have a dominant position by limiting access to ‘tap-as-you-go’ chips, favoring its own system. Now, competitors will have access to the standard technology for contactless payments, enabling them to provide alternative tap-to-pay solutions to iPhone users in the European Economic Area (EEA).
To ensure compliance, these changes will be in effect for a decade, with Apple appointing a monitoring trustee to oversee implementation. Apple faced the risk of a substantial fine, but with this resolution, Apple Pay and Apple Wallet will continue to be available in the EEA, offering users a secure and convenient payment method.
This decision comes amidst strained relations between the EU and Apple, particularly regarding the new Digital Markets Act aimed at preventing tech giants from favoring their services over competitors. Apple has faced accusations of breaching the DMA, and further probes are underway regarding its app developer fees.
Despite these challenges, Apple remains committed to providing a seamless user experience while complying with EU regulations. The company’s ongoing efforts to adapt to evolving competition rules demonstrate its dedication to maintaining a fair and competitive digital marketplace.