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Apple to Open Its Tap-And-Go Payment System to Rivals, EU Antitrust Investigation Resolves – Apple (NASDAQ:AAPL)

Apple Inc. AAPL agreed to allow its competitors to use its tap-and-go mobile payment system, a decision that resolves a long-running antitrust investigation by the European Union.

What happened:EU antitrust officials announced on Thursday that Apple will open up its tap-and-go mobile payments system to its rivals, a move that effectively ends a four-year investigation that could have resulted in a significant fine for the tech giant, Reuters reported.

The decision marks a significant shift for Apple, which has been under scrutiny by the EU for its business practices. The company is currently the subject of three investigations under the Digital Markets Act (DMA).

The European Commission, which acts as the EU’s antitrust enforcer, said Apple’s offer would be valid for 10 years. The move would allow competitors to effectively compete with Apple Pay for mobile payments using the iPhone in stores, while giving consumers a wider choice of secure and innovative mobile wallets.

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Apple’s tap-and-go technology, known as near-field communication (NFC), enables contactless payments using mobile wallets. The company will now allow developers to access its NFC to pre-build payment apps for competing mobile wallet providers.

Why is this important?:Apple’s decision to open up its payments system follows a series of regulatory challenges in Europe. In June, the company faced an EU antitrust investigation for allegedly violating digital rules, which could have resulted in fines of up to 10% of its global revenue. The investigation was part of the Digital Markets Act, which aimed to curb the dominance of large tech platforms.

Earlier this year, Apple was fined $1.95 billion for anti-competitive practices Spotify Technology S.A. and other music streaming services. The fine stemmed from Spotify’s 2019 complaint about Apple’s 30% App Store fees and related restrictions.

In April, the European Commission classified Apple’s iPadOS as a gatekeeper under the Digital Markets Act. This classification means that Apple controls access to its platforms, further increasing scrutiny of the company’s business practices.

Reduction: Apple Inc. shares closed at $232.98, up 1.88% on Wednesday. Pre-opening trading shows a small decline of 0.12%. Year to date, Apple shares are up 25.50%, according to Benzinga Pro data.

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Photo courtesy of: Shutterstock

This story was generated by Benzinga Neuro and edited by Kaustubh Bagalkote