The Impact of Apple’s Commitments on Tap and Go Payments Technology in Europe

The Impact of Apple’s Commitments on Tap and Go Payments Technology in Europe

EU antitrust regulators have recently accepted commitments from Apple to grant access to its tap and go payments technology to competitors, following a four-year investigation. This decision marks a significant milestone in the efforts to promote competition and in the mobile payments .

The European Commission launched an inquiry into Apple Pay in 2020, focusing on the terms and conditions set by Apple for integrating Apple Pay into and . The investigation also raised concerns about the tap and go technology and alleged refusals to provide access to Apple Pay. The Commission's findings revealed that Apple Pay's dominance could stifle competition among iPhone users.

In response to the Commission's concerns, Apple proposed several commitments to address the issues raised. These commitments include allowing third-party developers access to NFC technology without charging them, providing key iPhone features to competing payment wallets, and enabling users to set any wallet as the default option. These changes are aimed at fostering competition and innovation in the mobile payments market.

After market testing Apple's commitments and collecting feedback from stakeholders, the European Commission concluded that the final commitments adequately address the concerns regarding Apple's restrictions on tap and go payments technology. The Commission made these commitments legally binding on Apple, ensuring that the tech giant complies with the new regulations.

EU antitrust chief Margrethe Vestager emphasized that the approved commitments would benefit both competitors and customers by promoting innovation and choice in the mobile payments sector. With these changes, competing wallet developers will have equal to access tap and go technology, leading to a more dynamic and diverse market environment. Additionally, users will have the freedom to choose their preferred payment wallet without constraints.

Apple is required to implement the commitments by July 25 and ensure that all developers have access to tap and go technology for the next ten years. Despite these changes, there will be no alterations to Apple Pay or the Apple Wallet, maintaining continuity for existing users and .

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The acceptance of Apple's commitments by EU antitrust regulators signifies a significant step towards fostering competition and innovation in the mobile payments industry. By promoting access to tap and go technology for competitors, Apple's commitments are expected to bring about positive changes for both developers and users in Europe.

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