Apple has reached an agreement with the European Union to avoid hefty fines by opening up its mobile wallet technology to competitors for free over the next decade.
This move resolves a four-year-long investigation by the EU, which accused Apple of abusing its dominant market position by restricting access to its Near Field Communication (NFC) chip technology used for contactless payments, as Bloomberg reports.
EU Competition Commissioner Margrethe Vestager emphasised that Apple is now obligated to “allow competitors access to its ‘tap and go’ iPhone technology,” ensuring a more level playing field for other digital wallets in the European market.
Under the compromise, European consumers will be able to use other digital wallets to make payments for goods and services. This decision will be binding on Apple for 10 years, and if it violates it, it will face a fine of up to 10% of its global annual revenue.
Apple’s wallet allows consumers to store digital bank cards on iPhones, as well as ticket reservations. With the agreement, Apple will allow programmers outside the company to access its payment technology to help them create alternative mobile wallets, the Commission said on Thursday.
Commenting on the compromise, Apple said it is opening access to its payment chip in Europe, also allowing tap-and-go functionality for car and home keys, corporate cards, and event tickets.
(information from capital.gr)
