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The European Union on Thursday approved Apple’s proposal to allow competitors to use the iPhone’s tap-to-pay feature in the bloc, ending a lengthy investigation and sparing the company from a hefty fine.
The case dates back to 2022, when Brussels first accused Apple of violating EU competition law by blocking rivals from using its popular iPhone tap-to-pay system.
“Apple has committed to allow competitors to use the iPhone’s ‘touch and go’ technology. Today’s decision makes Apple’s commitment binding,” EU Competition Commissioner Margrethe Vestager said in a statement.
“From now on, competitors will be able to effectively compete with Apple Pay for mobile payments using iPhone in stores. As a result, consumers will have a wider range of secure and innovative mobile wallets to choose from,” she said.
The EU previously found that Apple enjoyed a dominant market position by restricting access to “touch and go” chips, or near-field communications (NFC), which allow devices to interconnect within a short range, in favor of its own system.
Now, competitors will be able to use the standard technology behind contactless payments to offer iPhone users in the European Economic Area (EEA), which includes the EU, Iceland, Liechtenstein and Norway, an alternative tap-to-pay tool.
Only customers with Apple IDs registered in the European Economic Area will be able to use these external apps, the European Commission said in a statement.
The changes must last for 10 years, and Apple must select a “monitoring trustee” to report to the committee on the implementation of the changes during that period.
Apple faces a fine of up to 10% of its annual global turnover, which totals $383 billion for the year ending September 2023.
“Apple Pay and Apple Wallet will continue to be available to users and developers in the European Economic Area (EEA) and will continue to offer a simple, secure and private way to pay, as well as seamlessly present passes through Apple Wallet,” the company said in a statement.
The investigation’s conclusions come at a particularly difficult time in the EU’s relationship with Apple, particularly over the bloc’s new competition rules for big tech companies.
The Digital Markets Act (DMA) is designed to ensure tech giants do not prioritize their own services over rivals, but the iPhone maker says the move puts users’ privacy at risk.
EU and Apple at loggerheads
One of the DMA’s main goals is to give consumers more choice when it comes to web browsers, app marketplaces, search engines, and other digital services.
The EU accused Apple in June of violating the DMA by preventing developers from freely directing consumers to other channels outside of its proprietary App Store to access product and service content.
It has also launched another investigation under the DMA into new fees Apple is charging app developers.
If a DMA violation is confirmed, the company could face significant fines.
In March this year, the European Union fined Apple 1.8 billion euros ($1.9 billion) in a separate antitrust case, but Apple has appealed the fine to the European Court of Justice.
Last year, Brussels also forced Apple to remove the Lightning port from its new iPhones, a change that was implemented not only in Europe but around the world.
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