The European Commission (EC) has approved Apple’s commitments to allow third-party access to the iPhone’s NFC chips for mobile payments. This decision resolves the EC’s investigation into Apple’s restrictive practices, potentially avoiding a hefty fine for the tech giant.
Apple’s Commitments
Opening NFC Access
Apple has agreed to:
- NFC Access: Allow third-party bank apps to access the iPhone’s NFC chips for tap-to-pay functionality, previously exclusive to Apple Pay.
- Non-Discriminatory Access: Implement a fair, objective, transparent, and non-discriminatory procedure for granting NFC access to developers.
- Default Payment Apps: Enable users to set a default app for mobile payments other than Apple Pay.
Security and Monitoring
Third-party mobile payments will be secured using the iPhone’s passcode, Touch ID, or Face ID. Additionally, Apple will:
- Monitoring Mechanism: Establish a monitoring system and a separate dispute settlement process to review decisions restricting NFC access.
- Trustee Reporting: Appoint a trustee to report on the implementation of these commitments to the EC.
Scope and Duration
These provisions apply to:
- EEA Developers: Third-party mobile app developers established in the European Economic Area (EEA).
- EEA Users: All iOS users with an Apple ID registered in the EEA. The functionality will temporarily remain available while traveling outside the EEA.
- Duration: These terms are legally binding for Apple and will remain in force for ten years.
Official Statement
Margrethe Vestager, EC Vice President in charge of competition policy, stated:
It is safe and convenient to pay with your phone. Apple has committed to allow rivals to access the ‘tap and go’ technology of iPhones. Today’s decision makes Apple’s commitments binding. It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone’s ecosystem. From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from.
Conclusion
The EC’s approval of Apple’s concessions marks a significant step towards greater competition and innovation in the mobile payments sector. By allowing third-party access to NFC chips, Apple is opening its ecosystem to more developers, providing consumers with a broader range of mobile wallet options. This decision is set to enhance the overall user experience and foster a competitive environment in the mobile payments market.
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