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IPhone Users In Europe Will No Longer Have To Use Apple Pay For Mobile Payments
Apple has caved into European regulators’ demand to allow rivals access to contactless payment technology on iPhones, which means their users will no longer be limited to the Apple Pay mobile wallet.
The development of tap-to-pay technology highlights Apple’s (AAPL) growing regulatory scrutiny in the European Union, where it is also facing a potentially massive fine for allegedly violating the bloc’s landmark Digital Markets Act.
The European Commission, the EU’s executive arm, announced these and other reforms to Apple’s business practices on Thursday, claiming they would increase competition in iPhone mobile payments.
Apple Pay | CNN Image
IPhone Users In Europe Will No Longer Have To Use Apple Pay For Mobile Payments
The EU’s competition chief, Margrethe Vestager, announced that iPhone owners can now use their preferred mobile wallet for in-store payments while still enjoying iPhone features such as double-click, tap-and-go, and Face ID.
The IT behemoth has until July 25 to adopt the reforms, which will be in effect for ten years and apply to all 30 countries in the European Economic Area.
The arrangement grants third-party mobile wallet developers unrestricted access to the standard technology used for contactless payments with iPhones, known as near-field communication (NFC) technology. Apple will also allow iPhone owners to select which mobile wallet should be the default wallet on their phones.
“Apple is providing developers in the European Economic Area with an option to enable NFC contactless payments and contactless transactions for car keys, closed loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and event tickets from within their iOS apps,” according to a statement obtained by CNN.
The European Commission first objected to Apple’s tap-to-pay tactics in 2022 after opening a formal antitrust inquiry against Apple Pay two years prior.
The regulators determined that Apple had abused its strong market position by blocking access to the NFC technology required to facilitate mobile payments. This means that rivals who wanted to create apps or wallets leveraging the iPhone’s tap-to-pay features have been unable to do so, forcing consumers to utilize Apple Pay for mobile purchases.
Apple Pay | Mastercard
IPhone Users In Europe Will No Longer Have To Use Apple Pay For Mobile Payments
“From now on, Apple can no longer use its control of the iPhone ecosystem to keep (competing) mobile wallets out of the market,” according to Vestager. “Competing wallet developers as well as consumers will benefit from these changes, opening up innovation and choice while keeping payments secure.”
The commitments, however, do not include Apple Watches. “Our impression was that the number of people who use Apple Watches for payments is rather small,” said Vestager, adding that omitting those gadgets had “limited harm done”.
SOURCE | CNN
