European Commission accuses Apple of preventing competition in contactless payment systems

Posted in: 02/05/2022 – 22:07

The European Commission said on Monday it had evidence that the US giant Apple was using its dominant position in the mobile device market to prevent competition in contactless payment systems. On the other hand, Apple justifies the imposition of restrictions on European consumers to access other payment options in its keenness to ensure the security of its customers.

The European Commission accused Monday Apple company” The American giant is preventing competition in contactless payment systems, by imposing the “Apple Pay” service on its mobile phone users.

The Commission, which represents the European Union’s executive body, said in a statement that the iPhone maker was “abusing its dominant position in the mobile market” by eliminating competing solutions from working on its devices.

“We have evidence that Apple has restricted third parties’ access to key technology needed to develop competing mobile wallet solutions on Apple devices… in favor of Apple Pay, its own solution,” European Competition Commissioner Margrethe Vestager told a news conference.

The European Commission criticized Apple last year for anti-competitive practices in the online music market, one of the many files it has faced with tech giants.

After it opened an investigation into Apple Pay in June 2020, the executive body on Monday informed the company in writing of the objections against it. Note that this is an official step that does not lead to predictions in advance of the outcome of the investigation.

The commission said it “opposes Apple’s decision to prevent “competitive” app developers from accessing critical hardware and software on its devices.”

Apple Pay is the only mobile payment method that can access NFC (Near Field Communication) technology built into iPhones or iPads to exchange data needed for contactless payments in stores or online, according to the commission.

For its part, Apple justifies the restrictions on access to other payment options by ensuring the security of its customers. It responded in a statement that Apple Pay “is only one of many options available to European consumers to make payments.” “We will continue to work with the Commission to ensure that European consumers have access to the payment option of their choice in a safe and secure environment,” she added.

No deadline has been set for the EU investigation to continue. If found guilty, Apple would have to correct its practices or face fines of up to 10% of its annual sales.

FRANCE 24/AFP

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