Apple lets rivals use contactless payments, but still faces multiple EU antitrust investigations

Apple will open up its tap-and-go mobile payments system to rivals, the European Union’s competition regulator said on Thursday, even as its chief Margrethe Vestager said the iPhone maker had not yet changed its business practices to comply with the groundbreaking technology rules.

The company is facing three investigations under the Digital Markets Act, which requires big tech companies to provide a level playing field and greater choice for users.

Vestager last month found that its App Store policies violated the DMA and launched an investigation into new contract terms for app developers and competing app stores.

She added that since then she has not seen any action by Apple to comply with the DMA.

“What I can say at this point is that we have not seen any change in Apple’s behavior regarding our initial findings,” Vestager told a news conference.

“I hoped so because I think it would be beneficial for consumers and customers, and of course it would be a sign of respect for the legislator if we discussed in detail what is expected of the guards,” she said.

In a separate statement Thursday, Vestager said she had accepted Apple’s offer to share its tap-and-go mobile payment system with competitors, ending a four-year investigation that could have resulted in the company facing a hefty fine.

The European Commission, which acts as the EU’s antitrust enforcer, said Apple’s offer would be valid for 10 years. More than 3,000 banks and issuers in Europe offer Apple Pay.

“From now on, Apple can no longer use its control over the iPhone ecosystem to exclude other mobile wallets from the market,” Vestager said.

Apple’s tap-and-go technology, called near-field communication, or NFC, enables contactless payments using mobile wallets. Now, it will give developers access to NFC to pre-build payment apps for competing mobile service providers.

Apple said its offering will enable European developers to enable contactless payments for car keys, closed-loop public transport, corporate IDs, house keys, hotel keys, retailer loyalty/rewards programs and event tickets from within iOS apps.

Norwegian mobile payment app Vipps MobilePay, which filed a complaint against Apple Pay, welcomed the company’s concessions, saying they allowed it to compete on equal terms with Apple and other providers.

In March, Apple was fined €1.84 billion, the first antitrust fine imposed on it in the EU, for blocking competition from Spotify and other music streaming rivals by introducing restrictions on the App Store.

As for Microsoft’s deal with cloud services organization CISPE to resolve an antitrust complaint and avoid an EU investigation, which was announced on Wednesday, Vestager said: “I think it’s a promising outcome.”