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Apple CEO Tim Cook attends the “Senior China Leaders Event” hosted by the National Committee on US-China Relations and the US-China Business Council on the sidelines of Asia-Pacific Economic Cooperation (APEC) Leaders Week in San Francisco, California. , on November 15, 2023.
Carlos Barria AFP | getty images
Apple has offered rivals the ability to access and interoperate with its contactless payments technology in an effort to appease antitrust regulators in Europe.
Apple Pay, the company’s mobile wallet feature, allows users to make purchases by simply tapping their iPhone, which runs on Apple’s operating system called iOS. Since Apple controls this operating system exclusively, third-party mobile wallet developers’ access to its payment technology is already restricted.
In 2022, the European Commission, the EU’s executive body, found that since Apple Pay is the only option available to iPhone users, “such exclusionary conduct could restrict competition in the market for mobile wallets on iOS devices.” As a result, Apple proposed a series of commitments to address the Commission’s concerns.
Apple said it would allow third-party developers to gain access to mobile payments technology, provide new features such as defaulting users to preferred payment apps, and enforce “non-discriminatory eligibility criteria” for rival developers.
“Through our ongoing discussions with the European Commission, we have offered a commitment to third-party developers in the European Economic Area to provide an option for their users to use Apple Pay and Apple, separately from within their iOS apps. NFC will enable contactless payments through the Wallet,” an Apple spokesperson told CNBC in a statement.
The commission said Friday that the changes will continue for 10 years. It is looking for feedback on solutions proposed by Apple.
If Apple’s commitments assuage European regulators’ competition concerns, the Commission will adopt them and legally require Apple to implement the changes. If the company fails to comply, it may have to pay a penalty of up to 10% of its total revenue.
According to a Bloomberg report, Apple is also facing pressure from antitrust regulators in the US, as the Justice Department is reportedly filing a case against the company. The DOJ case reportedly centers around software and hardware limitations on iPads and iPhones that restrict competition.
The DOJ could reportedly file a lawsuit against Apple within the first quarter, the report said.
Apple shares closed more than 1% higher on Friday.
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