Hemant Singh – Mumbai Uncensored, 6th May 2022
Apple faces a potential big fine and may be compelled to open its mobile payment system to competitors after EU antitrust investigators charged the iPhone maker with restricting rivals’ access to its technology used for mobile wallets.
This is Apple’s second EU allegation, after a complaint from Spotify last year, when EU authorities accused the corporation of impeding competition in the music streaming industry.
On Monday, the European Commission said that it had handed Apple a charge sheet, also known as a statement of objections, explaining how the corporation had exploited its dominant positioning in markets for e – wallets on iOS devices.
According to the Commission, Apple’s anti-competitive conduct extend back to 2015, when Apple Pay was introduced.
“We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices,” EU antitrust chief Margrethe Vestager said in a statement.
“In our statement of objections, we preliminarily found that Apple may have restricted competition, to the benefit of its own solution Apple Pay,” she said.
Apple said it would continue to work with the Commission, which could fine it up to ten percent of its global turnover, or $36.6 billion, based on its revenue last year, though EU penalties rarely reach that level.
“Apple Pay is only one of many options available to European consumers for making payments, and has ensured equal access to NFC while setting industry-leading standards for privacy and security,” the company said in a statement.
Apple’s Frankfurt-listed shares declined 0.7 percent at 1216 GMT as a result of the announcement.
Apple Pay is used by over 2,500 banks in Europe, as well as over 250 fintechs and challenger banks. On iPhones and iPads, the NFC chip allows for tap-and-go payments.
Vestager rejected the company’s security argument.
“Our investigation to date did not reveal any evidence that would point to such a higher security risk. On the contrary, evidence on our file indicates that Apple’s conduct cannot be justified by security concerns,” she told a news conference.
Before the Commission delivers a ruling, Apple can request a closed-door hearing to defend its case and also submit a written rebuttal, which might take a year or more.
The EU is preparing to introduce new tech legislation dubbed the Digital Markets Act next year, which would push Apple to open up its closed eco-system or risk fines of up to 10% of its worldwide revenue.
The Committee’s intention to deliver its statement of complaints to Apple corroborated a Reuters report from October of last year.
