The European Commission accuses Apple of blocking competition in contactless payment systems by imposing its Apple Pay service on users. She had opened an investigation in 2020 and informed the American giant of the grievances against her on Monday.
The EU executive believes that the iPhone maker “abused its dominant position in the mobile wallet markets” by preventing competing solutions from working on its devices. After complaints from European banks, Brussels opened an investigation in June 2020.
“We have evidence that Apple has restricted third-party access to key technology needed to develop competing mobile wallet solutions on Apple devices,” competition commissioner Margrethe Vestager said.
Apple “sets the rules of the game”
Launched in 2014, Apple Pay allows holders of the brand’s devices to make payments in stores by simply holding their device near the payment terminals. However, this application is the only mobile wallet solution to have access to the NFC (Near Field Communication) technology fitted to the iPhone or iPad to exchange the data necessary for contactless payment in stores or online, underlines the Commission.
Thus, any bank wishing to use this technology on these devices must go through Apple Pay, for a fee. “Apple has built a closed ecosystem around its devices and its iOS operating system,” lamented the Vice-President of the Commission. “Apple controls the gates of this ecosystem, setting the rules of the game.”
>> Read also: Apple is not a monopoly but must facilitate competition, according to justice
In the crosshairs
Guardian of competition in the European Union, the Commission informed Apple in writing of the grievances against it. This is a formal step that does not prejudge the outcome of the investigations. The company now has access to the file and will be able to respond to the accusations made.
The European executive had already pinned Apple last year for anti-competitive practices in the online music market, one of the many cases having opposed it to American tech giants.
>> Read about it: EU accuses Apple of abusing dominant position in online music
The Californian group is also one of the main targets of the new European regulation on digital markets (“Digital Markets Act”) finalized at the end of March, which aims to prevent the giants of the sector from ousting smaller players by unfair methods.
Apple invokes its good faith
For its part, Apple justifies access restrictions by its concern to ensure security for its customers. “Apple Pay is just one of the many options available to European consumers for making payments,” the Californian giant responded in a statement.
“We will continue to work with the Commission to ensure that European consumers have access to the payment option of their choice in a safe and secure environment,” she added.
No deadline has been set for the continuation of the EU investigation. If Apple is found guilty, it will have to remedy its practices or face fines of up to 10% of its annual turnover.
ats / jop