The European Commission has issued a Statement of Objections on how Apple operates Apple Pay in the European Union. The Commission’s report says that Apple is abusing its dominant position in the field of digital wallets on the iOS operating system and that it recommends that the company provide access to other developers to access the software and hardware needed to offer alternatives to Apple Pay.
Currently, only Apple Pay can be used for contactless payments on the iPhone
The statement has no decision-making role, and a thorough investigation is needed to declare Apple’s shares unfair competition, but it is a first step in that direction. Despite this statement, the European Commission says that the investigation will not be affected by the comments made so far, and everything will be analyzed objectively:
“The Commission does not agree with Apple’s decision to prevent mobile wallet applications from accessing the necessary hardware and software (NFC) on its devices to consolidate its own solution, Apple Pay. The Statement of Objections does not agree with the limited access to NFC for mobile wallet developers for in-store payments. “
Apple will have the opportunity to respond to the European Commission’s statement in an official manner soon.
Other components of Apple software may also be “unlocked” under European law
This is not the first time that Apple has been accused of unfair competition in the European Union. If it is determined that Apple is blocking competition on its platform, if the company refuses to comply with EU law and open access to NFC to other developers, it could be fined 10% of its annual global revenue. In the next violation, the fine could rise to 20%, while the European Commission could block the sale of non-compliant devices and services of the company in the territory of the European Union, in part or in full.
The EU has recently passed two important laws to limit the power of technology companies in its territory. The Digital Services Act is forcing companies to better moderate the content on their platforms, especially harmful content, while the Digital Markets Act seeks to encourage competition from smaller companies over larger ones. The latter will force large companies to open their messaging services such as WhatsApp, Messenger or iMessage, in order to communicate with other platforms or applications of other developers. Browsers, virtual assistants, and search engines will also need to be easily configured according to user preferences.
source: The Verge