EU accepts Apple commitment to allow rivals’ payment wallets on its devices | Economy

Apple will open its iPhones for free for ten years to compete with digital wallets and payment technologies. The US giant, which is under scrutiny in the EU as part of an antitrust investigation and faces a fine of up to 10% of its global annual revenue, intends to do so together with the European Commission, which dropped the case. European Commissioner for Competition Margrethe Vestager admitted that this was the first time the Commission had reached such an agreement. There was a brief truce between the EU and the company: Apple has other…

Apple will open up its iPhones for free for ten years to compete with digital wallets and payment technologies. The US giant, which is under scrutiny in an EU antitrust investigation and faces a fine of up to 10% of its global annual revenue, is set to do so in conjunction with the European Commission, which dropped the case. EU Competition Commissioner Margrethe Vestager acknowledged that it was the first time the Commission had reached such an agreement. The EU and the company have a short-lived truce: Apple also has other open processes to prevent competition from rivals in music streaming services and software.

In the increasingly common digital wallets that allow consumers to store their credit, debit and loyalty cards (or even airline tickets or boarding passes) and pay with their mobile phone in many shops and restaurants, Brussels has opened a case in 2022 against a major tech company for closing its devices to technologies and tools that are not part of (or adapted to) the Apple ecosystem. According to the European Commission, this constitutes an abuse of market power, harms users and companies and violates European competition rules.

Now, under a decade-long EU deal, Apple will allow other developers using tap-and-go and NFC wireless technology (most common in the EU and not developed by the Steve Jobs-founded company) to join Apple Pay and Apple Wallet. Use of digital wallets and payments using the system has tripled in the past four years, Vestager said at a press conference in Brussels.

It’s a growing and freely available technology, and Apple has refused to provide access to NFC technology on iPhones to compete with digital wallets, and reserves the system for its own wallets, according to an investigation launched by the European Commission. This means that competitors cannot reach Apple users. Brussels also believes that this monopoly could have a “negative impact” on innovation.

“Compared to other technologies, such as QR code payments, this provides the most secure and convenient payment process. It is the most common solution in the EU for developing viable payment apps, so access to NFC technology is essential,” the Competition Commissioner stressed. The European Commission tested Apple’s commitment package, which represents a major change in its work in Europe, and consulted with experts, banks, app developers, card issuers and financial associations. The response was good, and he agreed to close the case.

The EU has recently stepped up its scrutiny of anti-competitive trade practices. A fine for its digital wallet monopoly could have cost Apple around $40 billion. Last March, the European Commission imposed a €1,840 million fine on the US tech giant for abusing its dominant position in the music market to streaming;

That the highest fine ever imposed on this company for abusing its market position. Apple, Brussels said, does not allow its competitors, such as Spotify, to reach out to potential iPhone or iPad customers and offer them alternative services to Apple Music or cheaper offers.

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