Apple has offered to open up access to the near-field communication (NFC) system used by Apple Pay to other payment systems in the European Union, according to a report from Reuters. The effort is believed to be an effort by Apple to avoid impending EU regulatory action.
Reuters say that “people familiar with the matter” tell it that Apple has offered to let rivals access the NFC system in iPhones, but the details of Apple’s proposal have not been released. Banks have long complained that Apple’s exclusive access to the NFC contactless chip in its devices privileges Apple Pay over other payment systems.
In May 2022, the European Commission on Monday announced that it had issued a Statement of Objections to Apple over its limiting of third-party services’ access to the NFC capabilities of the iPhone, restricting competition in mobile wallets on iOS.
The EC informed Apple of its view that it abused its dominant position in markets for mobile wallets on iOS devices. By limiting access to a standard technology used for contactless payments with mobile devices in stores (‘Near-Field Communication (NFC)’ or ‘tap and go’), Apple restricts competition in the mobile wallet market on iOS.
Several Apple Pay competitors, including PayPal, pressured the EU to target Apple with antitrust complaints about the situation. Pay Pal was said to have filed informal complaints about the way Apple restricts third-party apps from accessing the NFC capabilities of the iPhone, which led to the EC’s Statement of Objections against Apple.
The European Commission will now likely seek feedback next month from rivals and customers before deciding whether to accept Apple’s offer, says the Reuters report.