EU Regulators Settle with Apple Over Payment Tech Access

Apple will offer its mobile wallet – which powers Apple Pay – technology to other providers as part of a new agreement with the European Union. This settlement, which will last ten years, ends an investigation into Apple’s restrictive practices. Regulatory Concerns and Settlement Terms The EU had suggested that Apple’s control over its payment tech might constitute market dominance abuse. To avoid significant fines, Apple will allow competitors free access to its technology, enabling users to store virtual debit and credit cards on iPhones. This arrangement also includes granting third-party digital wallets access to NFC technology on iOS. By providing access to its payment tech, Apple opens the door for other companies to offer similar services on its devices. This move could lead to greater competition and innovation within the digital payments market, marking a departure from Apple’s previous tight grip on NFC technology. Broader Regulatory Context Despite this settlement, Apple continues to face scrutiny from EU regulators across various sectors. Expectations are high for more regulatory actions, but this settlement shows a shift in Apple’s regulatory compliance strategy.  Last month, The European Union’s Competition Commissioner, Margrethe Vestager spotlighted several major concerns regarding Apple’s adherence to the Digital Markets Act (DMA). In an interview with CNBC, Vestager revealed that the European Commission is probing into Apple’s practices, which could lead to stringent regulatory actions. This agreement is part of a broader trend where major tech firms are being held accountable for their market behavior. EU regulators are vigilant about ensuring that market power does not stifle competition and consumer options. Last September, Apple Pay faced an antitrust lawsuit from a coalition of mostly payment card providers. The lawsuit alleges anticompetitive practices by Apple in regards to Apple Pay. The plaintiffs argue that Apple is abusing its market dominance to stifle competition in the mobile payments space. Specifically, the lawsuit claims Apple imposes excessive fees on consumers, potentially violating antitrust laws.