Apple has agreed to share its tap-and-go payment technology with its competitors in order to settle an antitrust case brought against it by the European Union.
According to the European Union, Apple has made a commitment to allow competitors to access its mobile payment system, which uses a tap-and-go method. This move is in response to an antitrust case against the company and aims to avoid a potential multi-billion dollar fine.
According to the EU, Apple has suggested allowing external mobile wallet and payment companies to use the contactless payment feature on their iOS system. The bloc of 27 countries is currently asking for input from “all interested parties” regarding these proposed modifications, prior to reaching a decision on the matter.
In 2022, the European Commission, which is responsible for enforcing antitrust laws within the bloc, accused Apple of misusing its dominant market position by restricting access to its mobile payment technology.
The city of Brussels has been utilizing antitrust lawsuits and recently enacted digital legislation to limit the influence of Apple and other large technology companies and safeguard customers.
The EU accused Apple of hindering competition by preventing developers of competing mobile wallet apps from using the near-field communication (NFC) technology used by Apple Pay. This limitation prevents the developers from providing similar services on Apple devices.
Violations of EU regulations on competition can result in penalties of up to 10% of a corporation’s yearly worldwide income, which, in the situation of Apple, may equate to billions of euros (dollars).
Apple’s proposed modifications to address EU antitrust worries would be in effect for ten years and would impact both competing mobile wallet companies and iOS users in the 27 countries of the bloc, as well as Iceland, Norway, and Liechtenstein. This information was stated by the commission.
Apple stated that it has engaged in ongoing conversations with the commission and has proposed to give developers of payment, banking, and digital wallet apps the choice to allow their users to make NFC contactless payments through their iOS apps, separate from Apple Pay and Apple Wallet.
Source: wral.com