Apple reaches deal with EU to open mobile payments system to rivals

The EU formally opened an investigation into Apple Pay in 2020. The investigation looked at the conditions Apple set for integrating Apple Pay into apps and websites, as well as concerns about tap-and-go technology and alleged denials of access to Apple Pay.

In 2022, the European Commission said Apple Pay could limit competition because it was the only option for iPhone users. Since then, Apple has offered several commitments to address those concerns, and in January it offered its rivals access to its contactless payment technology and mobile wallet.

Apple has committed to giving third-party developers access to NFC technology without charging them fees, providing access to key iPhone features like Face ID to competing payment wallets, and allowing users to set any wallet of their choice as their default, Vestager explained.

Earlier this year, the European Commission tested Apple’s commitments to gather feedback on the proposal. After assessing it, the Commission found that Apple’s final commitments addressed concerns about the tech giant’s restrictions on allowing third parties to access its tap-and-go payment technology. These changes have now become legally binding on Apple.

“These commitments introduce significant changes to the way Apple operates in Europe, to the benefit of competitors and customers,” Vestager said.

“From now on, Apple can no longer use its control over the iPhone ecosystem to keep other mobile wallets out of the market. Competing wallet makers, as well as consumers, will benefit from these changes by opening up innovation and choice while ensuring payment security,” she added.

The iPhone maker now has until July 25 to implement the commitments, Vestager said. All developers will then be able to offer mobile wallets for iPhones with tap-and-go technology, she explained. The commitments are to last for 10 years.

“Apple is offering developers in the European Economic Area the ability to enable NFC contactless payments and contactless transactions for car keys, public transit, corporate IDs, house keys, hotel keys, merchant loyalty/rewards programs, and event tickets from within iOS apps using APIs based on host card emulation,” Apple said in emailed comments.

He added that once the investigation is complete, there will be no changes to Apple Pay and Apple Wallet services.