Apple is on the brink of receiving approval from the European Commission to open its Near Field Communication (NFC) technology to third-party mobile wallets, a decision expected as early as May. This strategic move could prevent Apple from incurring a $40 billion fine, alleviating concerns over anticompetitive practices that have been under scrutiny since 2019.
The investigation into Apple Pay centered around allegations that Apple restricted access to its NFC chip exclusively to its own payment system, effectively stifling competition since 2015. Competitors were unable to use the critical hardware for contactless payments, which, according to regulators, hampered fair competition on Apple devices.
In response to looming regulatory pressures and the impending Digital Markets Act in the EU, Apple announced significant changes to its iOS operating system in January 2024. The modifications are designed to enable third-party banking and wallet apps within the European Economic Area to access the iPhone’s NFC capabilities without having to integrate with Apple Pay or incur transaction fees typically associated with Apple’s services.
Despite the positive steps forward, Apple has been asked to implement minor adjustments following feedback from competitors and consumers. Although there's potential for a delay, insiders maintain that the European Commission is targeting a final approval by this summer.
The approval from the EU would not only spare Apple from a massive fine but also set a precedent for how tech giants need to operate in markets governed by strict digital and antitrust regulations.
