European Commission antitrust regulators are poised to approve Apple’s proposal to open its NFC chip technology, enabling iPhone users to make contactless payments with third-party providers, as reported by Reuters.
A decision could be finalized as soon as May, potentially concluding an antitrust case initiated in 2022 and allowing Apple to avoid a hefty fine that could amount to billions of dollars.
In January, Apple proposed to permit third-party mobile wallet and payment service providers to access and integrate with the NFC functionality on iOS devices via a set of APIs at no cost, without necessitating the use of Apple Pay or Apple Wallet.
The company plans to develop the necessary APIs to enable equivalent access to the NFC components in Host Card Emulation mode. This technology allows for the secure storage of payment credentials and transaction completion without depending on an in-device secure element.
The proposed agreement, expected to last for a decade, would encompass all third-party mobile wallet app developers in the European Economic Area (EEA) and all iOS users with an Apple ID registered in the EEA. Additionally, Apple would not obstruct the use of these apps for payments in stores outside the EEA.
Furthermore, Apple is committed to allowing users to set their preferred payment apps as defaults, accessing authentication features like FaceID, and implementing a suppression mechanism.
Following input from competitors and customers, the European Commission requested some adjustments to the terms, paving the way for the offer’s acceptance this summer, according to Reuters sources.
While a resolution in Europe seems imminent, Apple also encounters challenges in the US, where the Justice Department has identified access to the NFC chip technology as part of its extensive lawsuit alleging that Apple monopolizes the smartphone market.