Apple (NASDAQ:AAPL) Opens Up Its Payment System to End EU Antitrust Investigation

Apple (NASDAQ:AAPL) has pledged to open up its tap-and-go mobile payments system to rivals as part of a settlement to resolve a four-year antitrust investigation by EU regulators. The commitment was accepted by EU antitrust regulators, allowing the tech giant to avoid a potentially hefty fine.

Details of changes made by AAPL

Apple will open up its tap-and-go mobile payment system for 10 years, allowing European developers to integrate various tap-and-go features into their iOS apps. The technology uses near-field communication (NFC), making contactless payments easier.

Additionally, Apple confirmed that its Apple Pay service will remain widely available and will be supported by more than 3,000 card-issuing banks in Europe.

EU antitrust investigation against AAPL

In 2022, the European Commission accused Apple of breaking competition law, alleging that the company made it harder for competitors to access its tap-and-go or near-field communication (NFC) chips, thereby favouring Apple Pay.

The EU said Apple’s commitments address concerns about third-party access to NFC payments for iOS users in the European Economic Area (EEA).

If the EU were not to accept these commitments, Apple could be fined up to 10% of its global annual turnover. Based on Apple’s fiscal 2023 revenue of $383 billion, the amount would be about $40 billion.

What is the target price for Apple stock?

Analysts remain cautiously optimistic about AAPL stock, with a moderate consensus rating of Buy based on 24 Buys, 10 Holds, and one Sell. AAPL is up over 20% over the past year, and the average AAPL price target of $222.64 implies a potential downside of 4.44% from current levels.