Apple Settles EU Case By Allowing Rivals To Use Its IPhone Payment System

The European Union (EU) has accepted Apple’s pledge to open its “tap to pay” iPhone payment system to competitors, resolving an antitrust case and avoiding a significant fine. The European Commission, the EU’s executive body and main antitrust enforcer, approved Apple’s commitments, making them legally binding.

In 2022, regulators accused Apple of abusing its market dominance by restricting access to its mobile payment technology. In response, Apple proposed in January to allow third-party mobile wallets and payment services access to its iOS contactless payment function. After further adjustments based on testing and feedback, the Commission confirmed that Apple’s final commitments address its competition concerns.

Margrethe Vestager, the Commission’s executive vice president for competition policy, commented that today’s undertakings mark the end of our Apple Pay inquiry. The pledges significantly alter Apple’s business practices in Europe for the advantage of rivals and clients.

Apple announced it would provide developers in the European Economic Area with the option to enable NFC (near-field communication) contactless payments for various uses, such as car keys and concert tickets.

The EU’s decision ensures more choice for European consumers. iPhone users will be able to select their default wallet, and mobile wallet developers will have access to key iPhone features like Face ID.

By July 25, Apple must open its payment system across the EU, Iceland, Norway, and Liechtenstein. These changes will last for a decade, monitored by a trustee.