The European Union antitrust agency is likely to approve Apple’s proposal to open a tap-and-go mobile payment system to its competitors, with some adjustments to the provisions. Apple’s offer to complete a four-year investigation will help it avoid charges of abuse and potential fines that could reach up to 10% of its total revenue globally.
Apple’s tap-and-go technology, known as near-field communications (NFC), enables contactless payments through mobile wallets. The European Commission previously accused Apple of hindering competition for its Apple Pay mobile wallet by restricting access to its technology for competing mobile wallet app developers.
In January, Apple proposed granting competitors access to use NFC on its iPhone, iPad, and other mobile devices at no additional cost, without the need to use Apple Pay or Apple Wallet. Access would be based on fair and non-discriminatory criteria, and additional functionality such as payment app settings, authentication features like FaceID, and dispute resolution mechanisms would be provided.
Following feedback from competitors and customers, Apple was asked to make adjustments to some provisions of the offer. The NFC proposal is intended to be in effect for 10 years. The European Commission aims to accept the offer in the summer, with May being the most likely month for approval, although this timeline could still change as Apple awaits final technical details.
