In a move to avoid hefty fines from the European Commission’s anti-trust charges, Apple is opening up its tap-and-go mobile payment system to competitors.
The EU will first seek input from Apple’s competitors and customers before coming to a decision. The goal is to ensure that there’s a fair and competitive market when it comes to mobile payments.
In its ongoing discussions with Apple’s rivals and customers, the European Commission will scrutinize potential loopholes that may unfairly disadvantage competitors and assess any adverse effects on consumer choice or experience.
A final decision is expected next year, presenting the possibility of a mandated cessation of the practice and imposing fines up to 10% of Apple’s annual turnover if found in violation of EU antitrust regulations.
A Look into Apple’s Monopolistic Practices
There have been numerous accusations and violations against Apple and its anti-competitive practices—most centering around App Store policies and business practices.
Last May, the EU filed a formal anti-trust complaint against the tech giant, accusing the company of barring competition on its devices, and the European Commission issued a similar statement of objections.
In July 2022, Apple was sued by Affinity Credit Union of Iowa for anti-competitive practices. According to the complaint, the tech titan forced more than 4,000 banks and credit unions that used Apple Pay to pay close to $1 billion in additional annual fees.
Apple has sole control of its platform when it comes to the distribution of apps on iOS devices. What this creates is a closed and limited ecosystem that also restricts user choice. But, the recent move to open up its technology to competitors can open up some healthy competition in the mobile payments space.