La European Commission has recently accepted theApple's offer to allow rivals access to the “tap and go” technology used for i contactless payments on iPhones. This decision was made for respond to concerns raised by Brussels in matters of competition and to guarantee a more open and competitive market.
“It is safe and convenient to pay by phone. Apple is committed to allow rivals access to the technology 'tap and go' of iPhones. Today's decision makes Apple's commitments binding,” the executive vice president commented on X Margrethe Vestager, responsible for competition policy. Brussels' decisionopens up competition in this crucial sector, preventing Apple from excluding other mobile wallets from the iPhone ecosystem. From now on, competitors will be able to effectively compete with Apple Pay for iPhone mobile payments in stores. Consumers will therefore have a wider range of secure and innovative mobile wallets to choose from.”
Apple's market power and Brussels' concerns
The EU found that Apple holds a significant market power in smart mobile devices and a dominant positionand in in-store mobile wallets on iOS, exercised primarily through Apple Pay. Apple Pay is the only mobile wallet that can access NFC (“Near-field-communication” or “tap and go”) technology on iPhones, a technology that Apple does not make available to third-party mobile wallet developers.
The European Commission preliminarily concluded that this refusal of access represented a abuse of dominant position from Apple.
Apple's commitment
To address the concerns raised by the Commission, Apple has offered a number of commitments of which, the most important, is free access to NFC input on iOS devices for third-party wallet providers. This means that mobile wallet developers will no longer have to use Apple Pay or Apple Wallet to access NFC technology on iPhones.
The commitments offered by Apple they will be binding for ten years and will apply throughout the European Economic Area. Their implementation will be monitored by a designated trustee, thus ensuring that Apple respects the terms of the commitments made.
