[ad_1]
Apple has committed to the EU to open the mobile payments technology of iPhones to third parties. This marks the end of a 4-year investigation against the Cupertino giant. Soon, users will have options beyond Apple Pay for mobile wallets.
In June 2020, the EU launched an investigation against Apple over the terms and conditions for integrating payment services into Apple Pay. A couple of years later (2022), the agency determined that Apple was restricting alternative wallets, limiting innovation and options for users. Basically, only Apple Pay could access the hardware (NFC) and software necessary for mobile payments on the company’s devices.
Multiple banks and rival wallet developers have already complained about the situation. After all, they were forced to exclusively use a platform controlled by Apple with no other alternatives. This gave Apple the power to set fees and conditions without other rivals being able to offer something better.
Apple commits to the EU to open its mobile payments technology
Now, the situation has finally been addressed, as Apple will open its NFC-based mobile payments technology (also called “tap-and-go”) to wallet rivals. Margrethe Vestager, EU antitrust chief, expressed satisfaction with Apple’s move. She said that “from now on, Apple can no longer use its control over the iPhone ecosystem to keep other mobile wallets out of the market. Competing wallet developers, as well as consumers, will benefit from these changes, opening up innovation and choice, while keeping payments secure.”
Apple’s commitment implies that third-party mobile wallets will be able to access the NFC of iPhones without paying licenses. Also to Face ID technology for biometric verification, something key in the authentication of payments. Additionally, Apple will allow users to choose the default mobile wallet on their devices. So, they can even replace Apple Pay entirely if they want.
Commitment valid for 10 years; the EU will remain vigilant
Apple’s commitments to the EU will be valid for 10 years. The company has until July 25 to comply, or it will receive a fine of up to 10% of its total annual gross revenue. The EU had already charged Apple for DMA non-compliance by preventing some apps or services from steering users to other platforms with better offers.
[ad_2]
Source link