Near-field communication (NFC) has changed the way we use our phones, allowing us to connect them wirelessly to other devices. Since NFC functionality started being integrated into phones, the option to make purchases through NFC-based payment methods has altered how we shop. Apple has managed to keep the NFC feature on the iPhone somewhat limited to developers — specifically, those looking to create alternatives toApple Pay. Now, European Union (EU) regulators are questioning the move, which is being viewed by some as an attempt to stifle competition.
As originally reported byReuters, the EU raised concerns over Apple’s actions last year, claiming it had been limiting access to its NFC technology. By doing so, developers faced additional challenges creating and offering alternatives to Apple Pay — such as Google Wallet — on the iPhone. Regulators also alleged that these limitations specifically allowed the company to push Apple Pay on users of iPads and iPhones.
Now, sources familiar with the situation say that Apple is reversing track, offering to allow competitors to access its mobile wallet technology. In addition to potentially opening up the market for alternative payment options on Apple devices, the company might be able to avoid antitrust charges – as well as a large fine from the EU. Thus far, the European Commission has not decided if it will accept Apple’s offer. The decision will be made once feedback from competitors and customers is fully assessed next month.
Apple Pay is just one feature that the EU has taken issue with as of late. The company is renowned for allegedly gatekeeping and, in turn, reducing competition within the tech industry. One of the ongoing topics of discussion has been iMessage, the native text messaging app of Apple devices. The service is known for being exclusive to products like the iPhone, which has resulted in a divide between Android and Apple device owners. As of late, regulatory bodies havetaken issue with iMessage, citing a lack of interoperability. The EU, in particular, has been adding pressure on Apple upon the rollout of the Digital Markets Act. The legislation went into effect in 2022, aiming to reduce “gatekeeping” tactics used by Big Tech companies. While Apple hasn’t been forced to open its doors to iMessage just yet, it has agreed to adopt Rich Communication Services in the coming months.
Apple is not exclusive to criticism from the EU — other Big Tech companies, such as Google and Meta, have faced scrutiny for their policies as well. How far they’ll be willing to go to avoid fines and other consequences from governing bodies has yet to be seen. That being said, any changes Apple makes could set the bar for how competitors react in the future.
