World
Apple’s Agreement with the E.U. on Tap-and-Go Payment Services
Learn about Apple’s recent agreement with the European Union regarding tap-and-go payment services, exploring the implications for the future of digital payments in the region.
Apple has reached an agreement with the European Union that will allow banks, payment services, and other app developers to utilize the technology behind Apple Pay to create competing tap-and-go payment services. This marks the first time Apple will permit access to the near field communication technology on iPhones in the E.U., ending a longstanding antitrust investigation.
The deal, exclusive to the European Union, is expected to introduce a variety of new apps and services for consumers seeking convenient mobile payment options. Previously, Apple had restricted access to its payment technology, effectively requiring users to utilize Apple Pay exclusively.
The investigation, initiated in 2020, aimed to determine if Apple was leveraging its dominant position in the smartphone market to exclude rival payment service providers. The agreement announced on Thursday specifically pertains to the ‘tap and go’ technology on iPhones, not extending to Apple Watch at this time.
European Commission’s executive vice president, Margrethe Vestager, emphasized the significance of this development, stating, “It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone’s ecosystem.”
This shift in Apple’s policy underscores the impact of E.U. tech regulations on everyday consumer products and services. Earlier this year, Apple agreed to allow access to rival app stores on iPhones and iPads to comply with new competition rules.
Similarly, Google and Meta have made adjustments to their services in response to E.U. regulations, while Apple decided not to launch its latest artificial intelligence service in the region due to regulatory uncertainties. TikTok faced restrictions in India, and the tech industry globally is experiencing significant changes due to government policies.
Looking ahead, regulatory scrutiny in Europe is expected to grow. Apple faces additional charges of violating E.U. competition laws related to the App Store and is appealing a hefty fine for anti-competitive practices in the music streaming market. Google, Meta, Microsoft, and TikTok are also subjects of E.U. investigations.