EU regulators have accused Apple of violating EU competition law, abusing its dominant position in mobile payments to limit rivals’ access to contactless technology.
Antitrust investigators are concerned that the US technology group is preventing competitors from accessing “tap and go” or proximity communication (NFC) chips to benefit its own Apple Pay system, the European Commission said in a statement on Monday. (two).
Margrethe Vestager, EU executive vice president responsible for competition policy, said Brussels has “evidence that Apple has restricted third-party access to key technology needed to develop rival mobile wallet solutions on Apple devices”.
She added that the commission “preliminarily found that Apple may have restricted competition for the benefit of its own Apple Pay solution.”
If confirmed, “such conduct would be illegal under our competition rules,” Vestager said. The company could face fines amounting to up to 10% of global revenue if the charges are upheld.
The EU indictment is the latest in a series of antitrust investigations opened in Brussels against the tech giant. Apple also faces scrutiny over how it may be hurting rivals on the App Store by taking 30% off some subscription fees, while denying some services the option to let users know there are other ways to upgrade. That case was opened after music streaming service Spotify complained to the commission more than two years ago.
The new charges come after Brussels passed two landmark laws, including the Digital Markets Act, designed to limit the power of big tech groups.
In its preliminary findings in the most recent case, Brussels said it considered Apple “enjoys significant market power in the smart mobile device market and a dominant position in the mobile wallet markets”.
The investigation’s findings added: “Apple Pay is the only mobile wallet solution that can access the required NFC input on iOS. Apple does not make it available to third-party mobile wallet app developers. NFC ‘tap and go’ technology is built into Apple’s mobile devices for in-store payments.”
Apple said: “We designed Apple Pay to provide an easy and secure way for users to digitally present their existing payment cards and for banks and other financial institutions to offer their customers contactless payments. Apple Pay is just one of many options available for European consumers to make payments and ensured equal access to NFC while setting industry-leading standards for privacy and security.
“We will continue to engage with the commission to ensure European consumers have access to their preferred payment option in a safe and secure environment.”
Vestager said, “Mobile payments play a rapidly growing role in our digital economy. It is important for the integration of European payments markets that consumers benefit from a competitive and innovative payments landscape.”
Translated by Luiz Roberto Goncalves
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
