Apple grants NFC access to developers, dodges EU fine
Apple has agreed to grant developers access to its Near-Field Communication (NFC) technology, after four years of back and forth in the European Union (EU). The European Commission confirmed that Apple's commitments are "legally binding," enabling developers to utilize tap-and-go technology, and access iOS features like Face ID authentication and double-click launch. This agreement saves Apple from a potential antitrust fine that could reach up to 10% of its global annual turnover, roughly $40 billion.
Allowing third-party wallets as default app
In addition to NFC access, Apple has agreed to let users set third-party wallets as their default app. Margrethe Vestager, the EU's Executive Vice President (EVP) in charge of competition policy, stated that this move "opens up competition in this crucial sector," preventing Apple from excluding other mobile wallets from the iPhone's ecosystem. She believes it will enable rivals to compete with Apple Pay for mobile payments, offering consumers a wider range of safe and innovative mobile wallets.
Commitments under EU scrutiny for 10 years
The commitments made by Apple are binding for a decade and will be overseen by an independent entity across the European Economic Area (EEA). The European Commission began its investigation into Apple in 2020, accusing the tech giant of limiting rival mobile wallet developers from accessing necessary technology. In 2024, after the Commission issued a preliminary view that Apple "abused its dominant position," Apple proposed to open up its NFC technology and report to an independent reviewer.
Another potential fine under DMA on the horizon
Despite recent agreement, Apple could still face substantial fines in another case where the European Commission issued a preliminary view that the company violated Digital Markets Act (DMA). The new law, effective from March 2024, led to an investigation into whether Apple prevented developers from informing users they could pay less for services elsewhere. Currently, Apple charges a 30% commission on purchases made through its App Store. The European Commission has until March 2025 to make a final ruling.
Apple's commitments include FRAND terms for NFC access
Apple's commitments to the EU include providing third parties with additional features and functionality, like defaulting of preferred payment apps, and access to authentication features such as Face ID. The tech giant also pledged to apply Fair, Reasonable, and Non-Discriminatory (FRAND) terms when deciding whether to offer access to NFC. Vestager stated that the EU accepted Apple's offer after pressing for some improvements, noting that "antitrust enforcement goes hand in hand with the DMA."
