Competitors of Apple will soon be allowed to use the technology in iPhones for contactless payments. The European Commission has made legally binding agreements with the tech company for this.
Apple Pay was the only “mobile wallet” that could use the NFC chip in iPhones. NFC technology allows you to make contactless payments in stores with your phone. Other developers were not given access to the NFC chip in iPhones by Apple.
According to the European Commission, Apple abused its dominant position in this way. That is now coming to an end, says European Commissioner Margrethe Vestager (Competition). Apple must ensure within two weeks that other payment services can also use the NFC chip in iPhones.
“From now on, competitors can effectively compete with Apple Pay for mobile payments with the iPhone in stores,” Vestager said. “Consumers can therefore choose from a wider range of secure and innovative mobile wallets.”
The agreements are valid for ten years. If Apple does not comply with the rules, the European Commission can impose a fine of up to 10 percent of its total annual turnover.
