Apple submitted a proposal to the European Commission detailing how it will open up its near-field communication (NFC) technology to third-party mobile wallet providers. If approved, it could lead to more Apple Pay competitors in Europe and possibly beyond.
The Commission opened an investigation into Apple in 2020 over the company potentially restricting access to the necessary technology to power mobile wallet apps developed by rivals, effectively eliminating Apple Pay’s competition. In 2022, the Commission found that Apple violated the European Union’s antitrust laws.
The primary issue is around access to NFC hardware, which is a core component of tap-and-go payments on smartphones. The Commission found that Apple prevents mobile wallet app developers from accessing that hardware on the iPhone. It’s worth noting, however, that Apple allows developers to access NFC hardware for other purposes not related to payments.
Apple’s proposal, if approved, would allow third parties to access APIs with NFC functionality. That includes access technology designed to keep payment information secure. Moreover, Apple wouldn’t charge a fee or require the use of Apple Pay. The change would apply to any developers and iOS users registered in the European Economic Area (EEA), though people outside the EEA might still be able to use third-party apps.
Additionally, Apple claims it will have an independent body review disputed instances where the company denied NFC access.
You can find a full list of the proposed changes here.
The European Commission isn’t rushing to accept Apple’s proposal and instead requested feedback from Apple’s rivals and other interested entities on whether the changes are adequate.
Source: European Commission Via: Engadget
