Apple and the European Union (EU) have reached an agreement to allow third-party developers access to the iPhone’s Near Field Communication (NFC) chip, ending a four-year investigation. This move opens doors for competition in the mobile payments market within the EU.
The European Commission announced today that Apple has agreed to make legally binding the commitments it offered in January of this year. These commitments will allow developers to create mobile wallets and payment apps that can utilize the iPhone’s NFC functionality without being forced to integrate with Apple Pay or Apple Wallet.
This agreement brings a close to the EU’s antitrust investigation into Apple’s mobile payment practices, which began in 2020. The EU had accused Apple of stifling competition by restricting access to its NFC chip, which is essential for contactless payments. The EU argued that this practice gave Apple an unfair advantage in the mobile payments market.
By settling, Apple avoids potential fines of up to USD 40 billion that the EU could have imposed. The details of the agreement haven’t been fully disclosed, but it paves the way for a more competitive mobile payments landscape within the European Union.
This could lead to a wider variety of mobile wallet options for iPhone users in the EU, potentially offering greater functionality and potentially lower fees compared to Apple Pay.
