Opening of NFC Tap-and-Go Technology on Apple: EU Approval Expected by May

Apple is on the verge of gaining EU approval for its proposal to open up its NFC-based tap-and-go mobile payments system to competitors. This move, which comes after tweaking some of the initial terms, could see the tech giant dodge significant fines and accusations of antitrust violations.

Aims to Resolve Four-Year Investigation

The European Commission has been investigating Apple for four years, accusing the company of stifling competition for its Apple Pay mobile wallet by restricting access to its NFC technology. Apple’s NFC (near-field communication) technology is crucial for enabling contactless payments through mobile wallets.

Apple’s Free and Fair Access to NFC

In January, Apple proposed allowing rival mobile wallets to access its NFC technology on iPhones, iPads, and other Apple devices without charge. This access would not require the use of Apple Pay or Apple Wallet and would be based on fair and non-discriminatory criteria. Apple also promised to provide additional features, including:

– Default Payment App Preferences: Users can set their preferred payment apps as default.

– Authentication Features: Rivals would have access to authentication features such as FaceID.

– Suppression Mechanism: To help rivals offer a seamless user experience.

– Dispute Settlement Mechanism: To resolve any conflicts that arise from this new open-access policy.

Feedback and Adjustments

After receiving feedback from rivals and customers, Apple was asked to tweak some of the terms of its proposal. The revised proposal is expected to be accepted by the European Commission by summer, with May being the most likely month for final approval, although this timeline may change as technical details are finalized.

Aim and Avoiding of Hefty Fine

By opening up its NFC technology, Apple aims to settle the investigation and avoid potential fines that could amount to 10% of its global annual revenue. Last month, Apple faced a 1.84 billion-euro ($2 billion) fine, its first EU antitrust penalty, for limiting competition from Spotify and other music streaming services through App Store restrictions.

Decision on NFC Technology

Apple’s decision to open up its NFC technology is a significant step towards resolving its antitrust issues in the EU. The move not only helps avoid hefty fines but also potentially fosters a more competitive landscape in the mobile payments market. As the final technical details are ironed out, the industry awaits the European Commission’s approval, anticipated by May.

Stay tuned for more updates on this developing story.