Fintech & Ecommerce

Apple Offers Rivals Access to Mobile Payment Tech

Apple has offered to provide competitors with the opportunity to access its contactless payment transaction technology and interact with this development.

Apple Offers Rivals Access to Mobile Payment Tech

The California-based tech giant suggested the mentioned solutions as part of attempts to appease European antitrust regulators.

Apple Pay is a feature of a mobile wallet. As part of this functional solution, consumers can make purchases by simply tapping the technology giant’s smartphones, which run an operating system called iOS.

Apple controls exclusively the specified operating system. The access of third-party developers of mobile wallets to the company’s payment technology was limited.

In 2022, the European Commission stated that Apple Pay, as the only option for contactless payment transactions for iPhone owners, causes the limits of the competition in the digital wallet market on iOS-based devices. The technology giant has proposed several obligations to satisfy the claims of this authority.

The company will provide users with new features, including the abandonment of preferred payment apps. The tech giant will apply non-discriminatory eligibility criteria for competing developers. Moreover, the company will allow third-party developers access to its mobile payment technology.

An Apple representative in a media comment said that during the ongoing communication with the European Commission, the brand has committed itself to providing third-party developers in the European Economic Area with an opportunity that will allow their users to make NFC contactless payment transactions from iOS apps, separately from Apple Pay and Apple Wallet.

The tech giant on Friday, January 19, stated that the specified changes will be in effect for 10 years. The company is also currently awaiting feedback on its solutions.

If Apple’s commitments assuage European regulators’ concerns about competition, the Commission will adopt them and require the tech giant to implement changes. The company will face a fine of up to 10% of total revenue if it ignores the requirements of the authorities.

Apple is currently also facing pressure from antitrust regulators in the United States. The media reports that the Justice Department is focused on software and hardware limitations on the iPad and iPhone, which negatively affect competition. According to preliminary information, this department may file a lawsuit against the tech giant during the first quarter of the current year.

The Justice Department and Apple’s lawyers have met three times about the potential trial. The relevant information was published by the media with reference to insiders.

Apple has also been embroiled in a civil lawsuit initiated by Fortnite Epic Games. As part of this trial, it must be clear whether the technology giant violated US federal antitrust laws. This week, the Supreme Court refused to hear the appeals of both companies. The trial ended with a mixed victory for Apple and Epic.

The tech giant has also been ordered to pay back $14.2 billion of allegedly unfair Irish tax breaks.

As we have reported earlier, Apple Prepares to Release iOS 17.3.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.