Posted by Hartley Charlton
Apple has proposed opening up its NFC payment technology to third-party developers in Europe, allowing direct competitors to Apple Pay to work on iPhone.
Historically, the use of Apple's NFC chip in the iPhone and Apple Watch for payments was exclusively used by Apple Pay, which limited the ability of banks and other financial services to offer their own contactless payment solutions on Apple platforms. In a statement to Reuters, Apple said:
We are committed to providing third-party developers in the European Economic Area with a capability that allows their users to make NFC contactless payments from within their devices. iOS apps separate from Apple Pay and Apple Wallet.
The concession is part of Apple's efforts to resolve antitrust charges levied by the European Commission, which accuses the company of stifling competition by restricting third parties. third-party access to NFC capabilities on iOS devices.
Under the proposed commitments, developers of payment, banking and digital wallet apps in the European Economic Area (EEA) will be able to integrate their own solutions with the NFC chip on Apple devices. This change means consumers will be able to use NFC-enabled apps from other providers alongside or instead of Apple Pay. The commitment is said to include additional features such as defaulting to preferred payment apps and integration with Apple security features such as Face ID.
Although these changes are concentrated in the EEA, a region wider than European Union. The implications of this shift could have a wider impact on the mobile payments market around the world. The EEA covers the vast majority of the European market, and Apple's decision could set a precedent for its operations in other regions of the world in the future as antitrust regulations tighten.
As part of its review process, the European Commission is currently seeking feedback from rival companies and clients over proposed concessions to Apple. The responses of these stakeholders will be taken into account when making the final decision. If approved, Apple's proposed obligations will be monitored by a fiduciary reporting to the Commission.
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Tags: European Union, European Commission, NFC, Europe, Apple Antitrust, Apple Pay[ 175 comments ]