Apple’s NFC Concessions: A New Era for Mobile Payments in Europe

Apple is set to open its tap-and-go mobile payments system to competitors, following pressure from EU antitrust regulator Margrethe Vestager. The company faces investigations for not complying with the Digital Markets Act. Apple's compliance will allow competitors to leverage its NFC technology, promoting a more equitable market landscape.

Apple will open its tap-and-go mobile payments system to rivals, according to an announcement from the EU antitrust regulator on Thursday. Despite this, Margrethe Vestager, the chief regulator, stated that the iPhone maker has yet to adjust its business practices in compliance with new tech rules.

Apple currently faces three investigations under the Digital Markets Act (DMA), which mandates Big Tech to ensure fair competition and provide users with greater choice. Vestager noted that Apple's App Store rules breached the DMA, and investigations have been launched into Apple's new contractual terms for app developers and rival app stores.

'We have not observed any behavioral change from Apple concerning our preliminary findings,' Vestager told a press conference. She emphasized the benefits for consumers and the importance of adhering to legislative expectations.

On Thursday, Vestager accepted Apple's proposal to open its tap-and-go system to rivals, concluding a four-year investigation that could have resulted in a significant fine. The offer, valid for 10 years, permits over 3,000 European banks and issuers to offer Apple Pay services.

From now on, Apple cannot use its control over the iPhone ecosystem to exclude other mobile wallets, added Vestager. Apple's NFC technology facilitates contactless payments through mobile wallets and will now be accessible to developers preparing payment apps for competing providers.

The Norwegian mobile payment app Vipps MobilePay, which had previously complained about Apple Pay, welcomed these concessions. Apple had received a 1.84-billion euro fine in March for stifling competition from Spotify and other music streaming services through App Store restrictions.

On a related note, Vestager commented positively on Microsoft's agreement with cloud services organization CISPE, aimed at resolving an antitrust complaint.