The European Commission is expected to approve Apple’s proposal to open up its tap-and-go mobile payment system to its competitors in the near future. This comes after a four-year investigation into the company’s practices, during which Apple offered to make some adjustments to its provisions in order to avoid charges of abuse and a potentially large fine that could amount to 10% of its total revenue worldwide.
Apple’s tap-and-go technology, known as near-field communications (NFC), enables contactless payments using mobile wallets. The company has previously been accused of stifling competition for its Apple Pay mobile wallet by restricting access to its technology for competing mobile wallet app developers. However, with this January offer, Apple is granting competitors access to NFC on its devices at no extra cost and without the need to use Apple Pay or Apple Wallet. Access will be based on fair and non-discriminatory criteria.
In addition to NFC access, Apple is also offering additional functionalities such as payment app settings, access to authentication features like FaceID, and dispute resolution mechanisms. The company has made adjustments to some provisions based on feedback from competitors and customers. The proposed NFC agreement is set to last for 10 years.
The European Commission aims to accept Apple’s offer in the summer, with May being the most likely month. However, the timeframe could still change as Apple finalizes technical details. This move is seen as a step towards promoting fair competition in the mobile payment market within the EU.
