Apple resolves EU antitrust investigation by making its mobile wallet technology available • iPhone Canada Blog

Apple has successfully cleared an antitrust investigation by the European Union (EU) by agreeing to make its mobile wallet technology available to other vendors for free over the next decade, Bloomberg reports.

The EU had warned that Apple’s restriction of access to tap-and-go technology was an abuse of its market power. By pledging to share the technology, Apple avoided the threat of a fine.

Margrethe Vestager, the head of the EU competition commission, announced that “Apple has committed to giving rivals access to the tap-and-go technology in iPhones.” The move is intended to prevent Apple from excluding other mobile wallets from its ecosystem.

Under the terms of the settlement, consumers in Europe will be able to use alternative digital wallets for checkout purchases. The commitment will remain in effect for ten years, and Apple will face fines of up to 10% of its global annual revenue if it breaches the agreement.

The deal offers a temporary truce between the EU and Apple, which has long had tense relations in Brussels over compliance.

Earlier this year, Apple challenged a 1.8 billion euro ($2 billion) fine imposed by the EU for hampering competition from music streaming services such as Spotify. The penalty follows a previous record-breaking 13 billion euro tax bill dispute over Irish state aid.

Apple’s digital wallet lets users store virtual debit and credit cards, as well as tickets, on their iPhones. The settlement includes Apple’s bid to give third-party developers access to its payment technology, enabling the creation of alternative mobile wallets.

The European Commission welcomed the decision on Thursday, noting that it will promote competition and innovation in the digital payments market.