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Apple Opens iPhone NFC Payments to Third-Party Providers Post EU Probe

Apple opens iPhone NFC to third-party wallets amid EU antitrust probe. Proposed 10-year commitment may affect EU users; non-compliance risks 10% of Apple’s turnover.
Apple Opens iPhone NFC Payments to Third-Party Providers Post EU Probe
Following an EU probe, Apple opens up iPhone NFC payments to third-party providers.
By Aatar Ata | Founder and Senior Author of Aatar X
4 min read — January 19, 2024
Apple is set to grant third-party mobile wallet and payment providers access to the iPhone’s NFC capabilities, as part of concessions aimed at resolving an antitrust investigation by the European Commission, as disclosed today.
Seeking input on these commitments, the Commission aims to terminate the exclusive access Apple Pay and Apple Wallet have had to the iPhone’s NFC payment features, marking the latest development in the ongoing four-year investigation.
The proposed commitments emerge approximately a year and a half after the Commission formally accused Apple of leveraging its iOS policies to impede competition within the mobile payments sector, violating EU law.
“The Commission takes issue with the decision by Apple to prevent mobile wallets app developers, from accessing the necessary hardware and software (‘NFC input’) on its devices, to the benefit of its own solution, Apple Pay,” highlighted the regulator back then.
While Apple does permit third-party app developers to utilize the iPhone’s NFC features for reading electronic tags, it confines the ability to make payments over NFC to its proprietary software.
In a December report, Reuters first revealed Apple’s intention to open up its tap-to-pay hardware to competitors.
“In ongoing discussions with the European Commission, we have proposed commitments to afford third-party developers in the European Economic Area an option allowing their users to execute NFC contactless payments within their iOS apps, distinct from Apple Pay and Apple Wallet,” stated Apple in a communication to the Wall Street Journal.
There is no explicit mention of these commitments extending to iPhone users or third-party wallet developers beyond the EU.
However, the Commission’s press release indicates that Apple’s suggestions would permit individuals with an Apple ID registered in the European Economic Area to conduct NFC payments through third-party apps outside the bloc.
These proposed commitments, valid for ten years, could incur penalties of up to 10 percent of Apple’s global annual turnover if not adhered to.
The call for feedback on these commitments follows a meeting between the Commission’s antitrust lead, Margrethe Vestager, and Apple CEO Tim Cook in California last week.
Apple Pay is just one of the Apple services targeted in the EU’s antitrust investigations, with the Commission also supporting Spotify and contesting App Store rules preventing developers from promoting app subscriptions outside of Apple’s platform.
A final decision, along with potential fines and a ban on the practice, is anticipated later this year, according to earlier reports by Bloomberg.
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