After allowing the installation of apps outside the App Store, Apple’s next step in Europe would be to open its NFC payment system. Currently, such technology is limited to Apple Pay, so other financial institutions cannot use it. However, as part of the company’s efforts to align with the old continent’s antitrust regulations, that exclusivity could cease to exist.
In 2020, the European Commission launched an investigation against Apple for restricting developers from using the iOS NFC payment system. The agency considers that this prohibition limits free competition, which violates the bloc’s antitrust laws.
Two years later, Margrethe Vestager, European Competition Commissioner, formally accused Apple. “We have indications that Apple restricted third-party access to key technology needed to develop rival mobile wallet solutions on its devices. In our statement of objections, we preliminarily found that Apple may have restricted competition to benefit its own solution, Apple Pay. If confirmed, such conduct would be illegal under our competition rules,” he mentioned.
Apple, of course, defended itself by saying that its NFC payment system was limited to guarantee the privacy and security of its users: “Apple Pay is just one of the many options available to European consumers to make payments, and it has guaranteed equality NFC access, while setting industry-leading standards for privacy and security.”
However, those from Cupertino were open to cooperating with the European Commission to avoid a major confrontation. The solution, then, would come soon.
The proposal that Apple has sent to the European Commission basically consists of open the APIs (Application Programming Interface) of the NFC payment system so that developers can integrate it into their apps. Banking institutions could therefore implement a rival system to Apple Pay.
Evidently, This proposal is still pending approval. However, considering that the move clearly addresses Vestager’s main concern, there does not seem to be a problem for both sides to reach an agreement. Once closed, Apple will be able to avoid a stratospheric fine.
An important point is that the APIs of the NFC payment system would only be available to developers and companies registered within the European Union.
Here it is worth remembering that this same measure could also be implemented in the United States. A couple of weeks ago, a report from The New York Times anticipated that The Department of Justice of the North American country is targeting Apple. The reason? Its closed ecosystem of products and services.
One of the functions they are inspecting is precisely the iPhone’s NFC payment system. Authorities believe that Apple’s blockade of this technology could be harming financial institutions.
If the investigation determines Apple’s faults, the Department of Justice has sufficient arguments to launch a federal antitrust lawsuit against the Californian company.