The European Commission (EC) is committed to promoting open access in the tech industry, prompting major companies to reevaluate their policies. For instance, the EU’s Digital Markets Act (DMA) has compelled Apple to allow multiple app stores on iPhones. Now, Apple is extending this openness to its contactless payment system as well.
Apple opens iPhone payments to competition in the EU
The EC has approved Apple’s updated commitments, signaling an end to the exclusive use of the Apple Pay mobile wallet on iPhones. Apple Pay enables users to make both in-store and online payments using their iPhones. Previously, Apple’s tight control over iOS limited access for mobile wallet developers.
Now, European developers can integrate tap-and-go payment options within their iOS apps for various purposes such as car keys, transit passes, corporate badges, home keys, hotel keys, merchant loyalty rewards, and event tickets.
Key Points:
- Apple is no longer restricting other mobile wallets from entering the market.
- Competition and consumers will benefit from increased innovation and choice.
- Changes will be implemented by July 25 and remain in effect for a decade across all 30 countries in the European Economic Area.
The EC initially raised concerns about Apple’s tap-to-pay practices back in 2022 when it launched a formal antitrust investigation into Apple Pay following previous restrictions on NFC technology access. This limitation prevented competitors from offering tap-to-pay features on iPhones, leaving users with no alternative to Apple Pay for mobile payments.
Failure to comply with DMA regulations could have resulted in even larger fines for Apple. Earlier this year, the tech giant faced a 1.84-billion euro antitrust penalty for impeding competition from music streaming services like Spotify through App Store policies.
As developers prepare for the upcoming changes following Apple’s agreement with the EU, an alternative to Apple Wallet is already poised for launch in Europe. Stay tuned for more tap-to-pay options coming your way!
