The EU has shouted at Apple. A change in payments is coming
Apple will open up its NFC contactless payment system to competitors. This means that you will be able to pay with Google Pay on iPhones. This is the result of pressure from the EU.
Apple will provide external suppliers access to contactless paymentsh on its mobile devices, said Margrethe Vestager, European Commissioner for Competition. While Apple has not yet changed its business practices to comply with EU requirements, that is expected to change soon.
Apple with three lawsuits
Apple finds itself in the crosshairs of EU commissioners after the entry into force of Digital Markets Act (Digital Markets Act (DMA), which requires Big Tech companies to freely access services and provide users with greater choice.
About the American giant There are three proceedings pending on the charge of using monopolistic practices that are inconsistent with DMA requirements. One of them concerns the App Store. According to the European Commission, the rules in the Apple store violate the Digital Markets Act by preventing app developers from directing users to alternative channels of offers and content.
The allegations also concern payment methods for services in the App Store and contactless payments via NFC using iPhones. The European Commission found that Apple is abusing its dominant positionand on the market, denying access to NFC payments in iOS to competing mobile wallet makers, while reserving such access exclusively for Apple Pay. Despite the initiation of proceedings against Apple, the American giant has not yet changed its policy.
It is safe and convenient to pay with your phone. @Apple has committed to allow rivals to access the ‘tap and go’ technology of iPhones. Today’s decision makes Apple’s commitments binding. It opens up competition in this crucial sector.https://t.co/oyidbOOXeW
— Margrethe Vestager (@vestager) July 11, 2024
Apple is apparently finally going to give in. Margrethe Vestager reported today that the company Apple has submitted its proposals to solve the problem. The agreement assumes that the American giant will provide third-party wallet providers with a fee-free access to NFC payments on iOS devices, without having to use Apple Pay or Apple Wallet. Apple has committed do not use any practices limiting access to NFC payments.
Apple will enable access to NFC in HCE card emulation mode. HCE allows you to securely store payment credentials and complete transactions using NFC, without using security chips on the device.
iPhone users will be able to set HCE as default payment method for all operations performed using a smartphone, protected by Touch ID and Face ID security.
