Apple is offering to open access to the iPhone NFC system as part of the antitrust investigation initiated by the European Union.
Apple is offering to open access to the iPhone NFC (Near Field Communication) system, used for Apple Pay, in response to the ongoing antitrust investigation by the European Union (EU). According to a Reuters report published today, this move aims to prevent accusations of anticompetitive practices.
Rather than face potential charges of breaching EU antitrust law, Apple made an offer designed to address the regulator's concerns.
One of the main complaints of banks and alternative payment platforms is that iPhones grant exclusive privileges to Apple Pay, allowing exclusive use of the system-wide contactless NFC chip. This means that only Apple Pay and the application Wallet (By Apple) can make contactless transactions at merchants' payment terminals.
Critics argue that this policy favors its own payment services too much Apple and that the company is taking advantage of the market popularity of iPhone devices to block competition in the mobile payments sector.
The EU Commission will seek consultation with rival mobile payment companies before deciding whether to accept the fix proposals Apple or if it continues with the antitrust lawsuit. The regulator has the power to impose fines of up to 10% of a company's revenue for breaches of EU competition laws.
In addition to the investigation into the iPhone's NFC system, Apple also faces other antitrust cases in the EU. One of these concerns a dispute over music streaming services, in which Spotify claims that the 30% commission charged by Apple for in-app purchases unfairly limits competition against Apple Music.
Further developments are expected to shed light on the details of the proposal Apple and how it will affect the mobile payments landscape in Europe.
Related: How to add a card on iPhone in Wallet for Apple Pay
These are not the only problems facing the company Apple in Europe. After the introduction USB-C for the iPhone power system, the company will have to allow iPhone owners to be able to install iOS apps from third-party sources, not only through App Store, as it currently is.
