Under pressure from the European Union, Apple has made a series of concessions, allowing competitors to use more non-contact technologies
Apple is making a series of concessions under pressure from the European Union, expecting to allow more access to its Near Field Communication (NFC) technology system for competitors to end the EU's investigation into its mobile payment system. This is Apple's response to allegations of violating competition law and may avoid hefty fines. The specific technical details are still being finalized, and a settlement may be reached in the coming days
According to the information from the Smart Finance and Economics APP, Apple (AAPL.US) is expected to make a series of concessions, allowing more access to its Near Field Communication (NFC) technology system by competitors. This move is expected to help the company resolve the European Union's investigation into its mobile payment system.
In 2022, the European Union's executive body, the European Commission, accused Apple of violating competition law by preventing competitors from using "tap-and-go" chips or NFC technology, thereby benefiting Apple's own Apple Pay payment system.
Apple Pay allows iPhone users to make payments using their mobile devices, which only run on the iOS operating system, creating a closed ecosystem with Apple. The European Commission had earlier stated that Apple controls various aspects of this ecosystem, including access for mobile wallet developers.
Sources revealed that in January this year, Apple made a 10-year commitment to the European Commission, allowing third-party mobile payment wallets access to the payment chips on iPhones. Brussels is currently testing these measures.
Insiders disclosed that a settlement could help Apple avoid sanctions, such as fines of up to 10% of the company's global annual turnover. Apple is still finalizing the technical details, but a settlement could be reached in the coming days