The Apple company offers to open access to the iPhone's NFC system as part of the antitrust investigation launched by the European Union.
Apple has proposed opening up access to iPhone devices' Near Field Communication (NFC) system used for Apple Pay in response to an ongoing antitrust investigation by the European Union (EU). According to a Reuters report published today, the move is aimed at preventing allegations of anti-competitive practices.
Rather than face potential charges of violating EU antitrust law, Apple made an offer designed to address the regulator's concerns.
One of the main gripes of banks and alternative payment platforms is that iPhone devices grant exclusive privileges to Apple Pay, allowing exclusive use of the system-wide contactless NFC chip. This means that only Apple Pay and the Wallet (by Apple) app can make contactless transactions at merchants' payment terminals.
Critics argue that the policy favors Apple's own payment services too much and that the company is taking advantage of the market popularity of iPhone devices to block competition in the mobile payments sector.
The EU Commission will seek consultation with rival mobile payment companies before deciding whether to accept Apple's remedy proposals or proceed with the antitrust case. The regulator has the power to impose fines of up to 10% of a company's revenue for breaches of EU competition laws.
In addition to the investigation into the iPhone's NFC system, Apple is also facing other antitrust cases in the EU. One of these concerns a dispute over music streaming services, in which Spotify claims that the 30% fee charged by Apple for in-app purchases unfairly limits competition against Apple Music.
Further developments are expected to shed light on the details of Apple's proposal and how it will affect the mobile payments landscape in Europe.
Related: How do you add a card to iPhone in Wallet for Apple Pay
These are not the only problems facing Apple in Europe. After the introduction of USB-C for the power system of iPhone devices, the company will have to allow iPhone owners to be able to install iOS apps from third-party sources, not only through the App Store, as it is currently.
