May 17, 2022

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EU claims Apple breached competition law over contactless payments | apple

European Union regulators have imposed accusations apple With violating competition law by restricting competitors’ access to technology essential to making contactless payments, and unfairly taking advantage of its Apple Pay service.

The European Commission On Monday, he said Apple was “setting the rules” on its closed platform, and expressed concern that it was restricting access to a technology called Near Field Communication (NFC), which competitors need to pay in stores using a mobile phone. governor.

“On a preliminary basis, we found that apple “It has abused its dominant position,” said Margrethe Vestager, the commission’s executive vice president in charge of competition policy.

“Apple has restricted access to key inputs needed to develop and operate mobile payment applications, or so-called ‘mobile wallets.’ Evidence in our file indicates that some developers did not go ahead with their plans because they were unable to reach iPhone users.” .

The committee said that Silicon Valley CompanyApple Pay is “by far the largest NFC-based mobile wallet on the market”.

“The initial conclusion we came up with today relates to mobile payments in stores,” Vestager said. “By excluding others from the game, Apple has unfairly protected its Apple Pay wallet from competition. If this behavior is proven, it will amount to abuse of a dominant position, which is illegal under our rules.”

The panel released a statement of objections, detailing the grounds on which it believes the company “may have unlawfully distorted competition in the market for mobile wallets on Apple devices”, and giving the $2.5 trillion (£2 trillion) company an opportunity to respond.

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Apple could face fines of up to 10% of its global revenue, which totaled $365 billion in 2021, if the fees are subsidized.

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“We designed Apple Pay to provide an easy and secure way for users to digitally present existing payment cards and for banks and other financial institutions to provide contactless payments to their customers,” a company spokesperson said.

“Apple Pay is only one of many options available to European consumers to make payments, and has ensured equal access to NFC while setting industry-leading standards for privacy and security. We will continue to work with the panel to ensure European consumers have access to the payment option of their choice in a safe and secure environment.” “

European regulators are also investigating Apple about how it could be Harming competitors by taking up to 30% fee on purchases and subscriptions made through the App Store, which it found ultimately drove prices up for consumers, after a complaint Brought to you by the music streaming service Spotify in 2019.