The EU antitrust agency is set to greenlight Apple’s proposal to open up its tap-and-go mobile payment system to competitors, with some minor changes. By doing so, Apple will avoid potential charges of abuse and hefty fines that could amount to up to 10% of its global revenue.
Apple’s NFC technology, which allows for contactless payments through mobile wallets, has been at the center of a controversy over competition in the mobile wallet space. Previously, the European Commission had accused Apple of restricting access to its NFC technology for competing mobile wallet app developers.
In response, Apple proposed granting competitors access to use NFC on its iPhone, iPad, and other mobile devices at no additional cost. This would be based on fair and non-discriminatory criteria, and additional functionality such as payment app settings, authentication features like FaceID, and dispute resolution mechanisms would be provided.
However, following feedback from competitors and customers, Apple was asked to make adjustments to some provisions of the offer. The NFC proposal is now intended to be in effect for 10 years. The European Commission aims to accept the offer in the summer, with May being the most likely month for approval. However, this timeline could still change as Apple awaits final technical details before making any official announcement.
