Apple will allow rival companies to operate wallet technology on its iPhones for free for a decade, European Union regulators said Thursday, in the latest review prompted by local rules.
Apple’s mobile wallet lets iPhone users pay for goods in stores and online using its own Apple Pay brand. Apple has so far not made its near-field communication (NFC) technology, which allows phones to communicate with payment terminals, available to rival developers, prompting the EU to file suit. warn in 2022 that restricting access to this technology constitutes an abuse of market power.
Apple’s concession ends a two-year dispute between the tech giant and the European Commission over the company’s payments technology. This change, first proposed by Apple in DecemberThis means the smartphone maker will avoid billions of dollars in fines and a formal declaration from Brussels that it has violated EU rules.
“(Apple’s commitment) opens up competition in this crucial sector by preventing Apple from excluding other mobile wallets from the iPhone ecosystem,” EU competition chief Margrethe Vestager said in a statement.
“From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with iPhone in stores. This will give consumers a wider range of secure and innovative e-wallets to choose from.” The changes will last at least 10 years and will apply only to users living in the European Union, as well as in Iceland, Liechtenstein and Norway.
Apple’s decision to expand access to NFC will mean that developers in Europe will be able to implement the technology within iOS apps for uses including car keys, corporate credentials, hotel keys and event tickets, Apple spokesperson Julien Trosdorf told WIRED.
“Apple Pay and Apple Wallet will continue to be available in the EEA for users and developers,” he added.
For years, Apple has maintained tight control over the technology available to the millions of people who use its devices. But intense scrutiny in the EU and new rules have forced the smartphone maker to make several major changes to the way it operates.
In response to EU complaints, the company will now have to allow alternative app stores on iPhones and iPads, creating competition for Apple’s App Store for the first time. The company will also have to offer “choice screens“when users buy a new Apple device, giving them the option to install Apple’s own-branded apps or third-party alternatives. The company also attractive a nearly $2 billion fine that focuses on rules and restrictions imposed on third-party developers creating iOS apps.