Brussels – Just a few months after the 1.8 billion maxi-fine imposed on Apple over the Spotify case, the European Commission and the Cupertino-based tech giant are making peace on another dossier relating to Apple Pay and the alleged abuse of dominant position against all other mobile wallet apps.
Brussels accepted Apple’s proposed commitments that ensure an effective competition regime. If the US giant implements them by July 25, one of the chapters in the complicated relationship between the European Commission and the company of Steve Jobs could be closed. A chapter opened in 2022 when EU Competition Commissioner Margrethe Vestager raised doubts about Apple’s conduct and later found that the company was abusing its dominant position by restricting access to the technology needed to make payments with iPhones.
The underlying issue is well known, namely that “Apple has built a closed ecosystem around its devices and operating systems.” Therefore – the European Commission notes – it refused to give access to the iPhone’s NFC technology (essential for developing mobile wallets) to competing app developers. Instead, it reserved its exclusive use for Apple Pay. However, Apple did not develop the NFC technology; it is a standardized technology that is freely available.
In addition to preventing other providers from reaching iPhone users, Apple’s obstructionism “may have had a negative impact on innovation,” Vestager noted. A policy “harmful to consumers and illegal under EU competition rules,” the EU Commission said.
In response to Brussels’ concerns, Apple proposed to the Commission to make an initial set of commitments. These were rejected after feedback from banks, app developers, and financial associations across the EU. Apple raised the bar and offered better remedies, which the European Commission accepted and made binding.
First, Apple is committed to giving other mobile wallet apps access to NFC functionality. Free access. In addition, the Cupertino company will allow access to other important features available on iPhones, such as double-clicking the side button on one’s iPhone to launch the preferred payment app. Competing wallets will also be able to use Face ID, Touch ID, and passcodes to verify users’ identities. Finally, Apple will allow users to choose the standard mobile wallet option.
The commitments made by the high-tech giant “end our investigation into Apple Pay,” Vestager announced. But other disputes relating to compliance with the new European Digital Marketplace Act (DMA) remain open, in particular, Apple’s use of so-called anti-steering provisions, which prohibit third-party app developers from informing iOS users within their apps about the prices of subscription offers available on the Internet, as well as price differences between in-app subscriptions.
In doing so, Apple makes it nearly impossible for iOS users to learn about or sign up for subscriptions to music streaming apps available outside the App Store or indirectly imposes higher costs on them. For that, the European Commission imposed a nine-figure fine, accompanied by an order to remove the anti-steering provisions and to “refrain from repeating the infringement or adopting practices with equivalent object or effect in the future.” But so far, nothing has moved in Cupertino. “What I can say so far is that we have not seen a change in behavior from Apple. I would have hoped so,” Vestager confirmed at a press conference.
English version by the Translation Service of Withub
