Group threatened with high fines
The EU Commission has concerns about Apple Pay
May 2, 2022, 1:12 p.m
The EU Commission accuses Apple of exploiting its dominant market position in the mobile wallet market. As reported by the Brussels antitrust authorities, the US group is impeding competition by restricting access to a standard technology.
According to preliminary investigations by the EU Commission, the US company Apple is violating European competition regulations. The company is accused of restricting access to a standard technology for contactless payments with mobile devices and thus restricting competition in the field of mobile wallets in favor of its own Apple Pay solution, the authority said in Brussels.
“It is important for the integration of the European payments markets that consumers reap the benefits of a competitive and innovative market environment,” commented Vice President Margrethe Vestager. However, there is now evidence that Apple has restricted third-party access to key technologies needed to develop competing mobile wallets for Apple devices. Apple now has the opportunity to comment on the complaints. If the competition watchdogs then stick to their assessment, the group could face a high fine.
If companies breach EU competition rules, they risk fines of up to 10% of their annual global turnover. Banks, among others, have long seen themselves at a disadvantage when it comes to contactless payments on the iPhone. Above all, they criticize the fact that Apple cannot access the NFC radio chip, which allows you to use the phone at the checkout instead of a bank card. Apple Pay is the only way to get access to the NFC chip on iPhones. Apple sees this as a technical solution to ensure payment security and ensures that anyone who wants access to Apple Pay will get it.
With the submission of the objections, the EU Commission is pushing ahead with further proceedings against Apple. Last year she had officially accused Apple of unfair competition in its app store on iPhone and iPad. Accordingly, Apple disadvantages other providers of music streaming apps and therefore has to fear a penalty.