If you have an iPhone, you can use Apple Pay to pay contactless… and only Apple Pay. The European Union wants to change that.
The European Commission has officially announced that it has communicated with Apple regarding its restrictions that prevent third-party services from accessing the iPhone’s NFC capabilities, thereby restricting competition to contactless payment on iOS.
Apple will be forced to change its business practices
The statement is a preliminary conclusion that will need to be confirmed through further investigation before consequences can be decided:
The European Commission has informed Apple of its preliminary view that Apple has abused its dominant position in mobile payment markets on iOS devices. By limiting access to a standard technology used for contactless payments with mobile devices in stores (“Near-Field Communication (NFC)” or “tap and go”), Apple is restricting competition on iOS.
The EU has the ability to impose fines of up to 10% of Apple’s worldwide turnover (36 billion dollars or 34.10 billion euros) and to impose changes in business practices. In practice, however, the fine should be much lower.
The EU is opening several fronts to curb the power of the Tech giants. In recent weeks, the European Union the DSA, the Digital Service Act which completes the DMA, Digital Market Act, adopted last month, which is dedicated to anti-competitive practices in digital markets. Regarding the App Store, iMessage or even contactless payment on the iPhone, Apple will have to change its rules to promote the emergence of competitive services in its own ecosystem.
As a reminder, on Android it is possible to change the default service for contactless payment. Which is not possible on iPhone where Apple Pay is mandatory.
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