Apple opens NFC technology access, dodges EU antitrust scrutiny

2 months ago 12

The European Commission legally bound Apple to commitments on Thursday (11 July), addressing previous competition concerns over its refusal to grant rivals access to NFC technology for contactless payments.

Since the Commission decided to legally bind Apple in these commitments, which would open this ecosystem to competitors, the company is dodging further antitrust scrutiny in this field for now.

The case concerns Near-Field Communication (NFC), the technology used for most smartphone payments. Apple devices use Apple Pay for NFC payments by default.

This gives Apple a dominant position in the mobile wallet market on iOS. The company has not allowed third-party developers to access NFC components, which the Commission found to be an abuse of its dominant position under the DMA, according to Thursday’s press release.

The EU executive shared Apple’s commitments to address the competition concerns in January.

If the company fails to honour the now-legally binding commitments, the Commission may impose a fine of up to 10% of its annual turnover or a daily penalty of 5% of its daily turnover for non-compliance.

The Commission said Apple’s updated commitments include allowing third-party wallet providers free access to NFC technology on iOS devices via Host Card Emulation (HCE), which securely stores payment credentials for transactions.n

“Apple Pay and Apple Wallet will continue to be available in the European Economic Area (EEA) for users and developers,” an Apple representative told Euractiv following the announcement.

EU Commission seeks feedback over Apple Pay's commitments

The European Commission shared commitments by Apple to allow third-party payments on Friday (19 January) and invited comments on them due to competition concerns over restricted access to the technology used for contactless payments on mobile devices.

Apple’s commitments

Between 19 January and 19 February, the Commission tested Apple’s commitments and consulted third parties, seeking feedback based on which the company updated its previous commitments, the EU executive said.

“Many banks, app developers, card issuers, and financial associations gave us their feedback,” Margrethe Vestager, executive vice president and commissioner for competition at the Commission, said during a Thursday briefing.

The tech giant committed to a fair and transparent process for granting NFC access, allowing users to easily set HCE payment apps as defaults and use related features like Field Detect and authentication tools.

Apple also set up a system to oversee compliance with its NFC access commitments across the EEA and resolve any disputes.

The company broadened NFC payment options to include certified terminals, enabled developers to integrate NFC functions freely without licenses, simplified setting default payment apps, and enhanced dispute resolution with improved monitoring.

Because of its key position, Apple is designated as a gatekeeper under the EU’s digital competition regulation, the Digital Markets Act (DMA).

The DMA, among other things, mandates that gatekeepers allow interoperability with their hardware and software, including NFC technology, the decision also addresses these practices, Vestager said on Thursday.

She noted that monitoring and dispute resolution mechanisms, which Apple also committed to, are, however, “more than what is required by the DMA.”