Reports suggest that the EU will accept Apple's proposal to open up iPhone NFC payment technology to rivals; investigation could be completed as early as May, avoiding hefty fines
Apple has reportedly offered to provide third-party companies with technology to access contactless payments (NFC) on its devices, such as iPhones and iPads, free of charge in a bid to gain approval from European Union (EU) antitrust regulators, in what appears to be an attempt to avoid hefty fines of up to 10% of global revenue.
Apple's offer to open up tap-and-go tech to be approved by EU next month, sources say | Reuters
EU to approve Apple's iPhone NFC chip policy changes, will allow competitors to Apple Pay - 9to5Mac
https://9to5mac.com/2024/04/19/apple-pay-eu-nfc-chip-iphone/
iPhones and Apple Watches are equipped with NFC chips, making contactless payments technically possible. However, for security reasons, Apple only allows contactless payments for ' Apple Pay ,' which uses biometric authentication technologies such as Face ID and Touch ID to verify identity, and does not provide access to NFC to other companies' apps and services. However, the EU has pointed out that this is anti-competitive and has begun an investigation.
Apple may be charged with violating EU antitrust laws over NFC chips, contactless payments like Apple Pay may be opened to other services - GIGAZINE
In particular, Apple has been designated as a 'gatekeeper' subject to regulation under the Digital Markets Act (DMA) , which came into force in March 2024, and if an investigation finds that the company has violated the law, it could be fined up to 10% of its global sales.
In January 2024, Apple responded to the proposal from the European Commission by issuing a statement saying, 'We have committed to providing third-party developers in the European Economic Area with the option for users to use NFC from within their iOS apps, separate from Apple Pay and Apple Wallet.' Apple is also proposing to provide additional features, such as default settings for preferred payment apps and access to authentication features including Face ID.
According to Reuters, the European Commission is open to accepting Apple's proposal with some modifications to the terms. The European Commission aims to accept the proposal by the summer of 2024, and while Apple needs to finalize the technical details, Reuters reported that the proposal could be accepted as early as May.
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