Apple is actively working to address antitrust charges from the European Commission by granting third-party providers access to the NFC chip technology, which enables iPhone users to make contactless payments.
The tech giant aims to resolve the antitrust case initiated in 2022 and avoid potentially hefty fines. To achieve this, Apple is offering third-party mobile wallet and payment service providers the ability to access and utilize the NFC functionality on iOS devices via a set of APIs, free of charge, independent of Apple Pay or Apple Wallet.
Apple plans to develop the necessary APIs that will allow access to NFC components in Host Card Emulation mode. This technology securely stores payment credentials and facilitates transactions without depending on an in-device secure element.
The proposed agreement will last for 10 years and will apply to all third-party mobile wallet app developers established in the European Economic Area (EEA) and all iOS users with an Apple ID registered in the EEA. Additionally, Apple will not restrict the use of these apps for payments in stores located outside the EEA.
Furthermore, Apple has committed to allowing the default setting of preferred payment apps, granting access to authentication features like Face ID, and providing a suppression mechanism.
The European Commission is now giving competitors and customers a month to provide feedback on these commitments.
Currently, Apple Pay is the only mobile payment service that can utilize the NFC ‘tap and go’ technology embedded in iOS devices for in-store transactions. This exclusivity has faced criticism from banks in various regions for stifling competition with their own payment applications.
In the United States, a judge has ruled that Apple must respond to a class-action antitrust lawsuit from card issuers regarding this matter, and the Consumer Financial Protection Bureau has also raised concerns about Apple’s practices.
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