Global: EU Antitrust Regulators Nearing Approval of Apple’s Tap-and-Go Tech Proposal

Antitrust regulators in the European Union (EU) are on the verge of greenlighting Apple’s tap-and-go mobile payments system proposals, with approval expected as soon as May.

Following accusations from the European Commission (EC) of stifling competition, Apple proposed opening its system to competitors. After incorporating feedback from Apple’s rivals and customers, and making some adjustments to its proposals, regulators are poised to give their approval, Reuters reported on Friday (April 19), citing anonymous sources.

By resolving the investigation, Apple could evade a finding of wrongdoing and a potential fine of up to 10% of its global annual turnover, according to the report.

The focus of the investigation revolves around Apple’s tap-and-go technology, also known as near-field communication (NFC), which enables mobile wallets to conduct contactless payments.

The EC asserted two years ago that Apple had impeded competition in the mobile wallet sector by restricting rivals’ access to this technology on its mobile devices.

In January, Apple extended an offer to allow its competitors access, introduce additional functionalities, and establish a mechanism for resolving disputes, Reuters reported.

Although the EC aims to accept the proposal by May or at least by summer, the timeline could shift if Apple needs to finalize technical details, the report noted.

NFC technology has facilitated contactless payments via the Apple Pay mobile wallet on Apple’s smartphones since the launch of the iPhone 6, as reported by PYMNTS in November 2022.

Unlike users of Android phones, iPhone users currently lack alternative options for making NFC payments, as Apple’s development agreement terms prohibit third parties from utilizing the iPhone’s NFC chip for such purposes.

NFC technology has also emerged as a contentious issue in the ongoing tussle between Big Tech and regulators in the United States. A September report by the Consumer Financial Protection Bureau (CFPB) spotlighted Apple’s NFC chip policies.

The CFPB suggested that broadening access to the technology could incentivize innovation among providers, prompting them to develop new features and services to retain customers.

These providers may include banks, retailers, and established payment app providers, all of whom have a vested interest in creating tap-to-pay apps for Apple devices, according to the CFPB.