The European Union antitrust regulator, the European Commission, announced today that it has accepted Apple's proposal to "open up its 'tap-and-go' mobile payment system to competitors", ending a four-year antitrust investigation.
For Apple, reaching a settlement with the European Commission is a rare move. Previously, the company had been fighting back against the Commission's charges. After this case is settled, according to the EU's new Digital Markets Act, Apple still faces three investigations.
The European Commission stated today that Apple's proposal to open up the mobile payment system to competitors will be valid for 10 years. Currently, there are more than 3,000 banks and issuers in Europe that provide Apple's Apple Pay service.
Margrethe Vestager, the head of EU antitrust, said: "Starting now, competitors will be able to compete effectively with Apple Pay at checkout via the iPhone. This means that consumers will have a wider choice of secure and innovative mobile wallets to choose from."
Apple's 'tap-and-go' technology, known as Near Field Communication (NFC), allows contactless payments to be made using mobile wallets. After this settlement, Apple will allow developers to access its NFC and pre-build payment applications for other mobile wallet providers.
Apple states that its proposal will offer European developers an option to enable 'tap-and-go' payments in their iOS apps for autos, closed-loop transportation, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and a variety of event tickets.
Four years ago, the EU launched an antitrust investigation into Apple's 'tap-and-go' technology. In 2022, the EU accused the technology of blocking market competition. In January of this year, Apple proposed a settlement to allow competitors to use this technology for free, avoiding a fine.
In March of this year, Apple was fined over 1.8 billion euros (approximately $1.95 billion) by the EU for preventing Spotify and other music streaming services from notifying users of payment options other than the Apple App Store. This is Apple's first-ever antitrust fine by the EU.