Apple Opens Tap-and-Go Payments to Rivals, Settles EU Antitrust Probe

Apple has resolved a long EU antitrust investigation by agreeing to open its tap-and-go mobile payments system to competitors, EU regulators announced Thursday.

The decision averts a potential hefty fine for the tech giant. It marks a significant shift in its stance toward EU scrutiny of its business practices.

Under the settlement, Apple will allow rivals to utilize its near-field communication (NFC) technology, which powers contactless payments through Apple Pay. This move grants developers access to NFC to integrate payment apps for competing mobile wallets on iPhones, a capability previously restricted by Apple.

EU antitrust chief Margrethe Vestager highlighted the impact of this decision, stating, “From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. Consumers will have a wider range of safe and innovative mobile wallets.”

Apple’s offer, which has been valid for ten years, is expected to foster competition in the mobile payments sector across Europe, where more than 3,000 banks and issuers already offer Apple Pay.

The settlement comes amidst broader scrutiny under the Digital Markets Act (DMA). Apple faces three separate investigations into its business practices. This marks a rare compliance move by Apple, which has previously contested EU regulatory actions.

In addition to opening NFC access for mobile payments, Apple’s offer includes provisions for developers to enable tap-and-go payments for various applications beyond traditional payments, such as car keys, transit passes, and loyalty programs directly within iOS apps.

The EU had accused Apple of impeding competition by limiting NFC access to its own Apple Pay system, leading to the charges two years ago. Apple’s proactive settlement offer in January aimed to resolve the case without fines or admitting wrongdoing.

Earlier this year, Apple incurred its first EU antitrust penalty, amounting to €1.84 billion (US$2 billion), for restricting competition in its App Store. This decision underscored ongoing regulatory challenges for the tech industry giant in Europe.