Apple has offered to provide competitors with access to its contactless payment technology in an attempt to satisfy antitrust regulators in Europe. The company’s mobile wallet feature, Apple Pay, exclusively operates on its iPhones, thereby limiting third-party mobile wallet developers’ access to its technology.
However, the European Commission identified in 2022 that Apple Pay, being the sole payment option for iPhone users, could limit the competition for mobile wallets on iOS devices.
To address these concerns, Apple has proposed commitments that include offering third-party developers access to its mobile payment tech and including non-discriminatory eligibility criteria for rival developers. Additionally, it plans to introduce new features that allow users to default to their preferred payment apps.
These changes, subject to feedback, are expected to stay in effect for a decade.
If approved, regulators will legally require Apple to implement these changes, with a penalty for non-compliance of up to 10% of its total revenue. Apple is also facing a potential case from the Department of Justice in the U.S due to supposed software and hardware restrictions on its devices that limit competition.
A potential lawsuit is anticipated to be filed within the first quarter.
