Apple might face EU antitrust charge over NFC chip
- ByManjeet Singh | October 7, 2021
People familiar with the matter say Apple is facing an EU antitrust charge over its NFC chip technology, a move that puts it at risk of a possible hefty fine and could force it to open its mobile payment system to rivals. Margrethe Vestager, the European Union’s antitrust chief, launched an investigation into Apple Pay in June last year.
There were three concerns raised initially: Apple’s NFC chip, which enables tap-and-go payments on iPhones, its terms and conditions on how Apple Pay should be used in merchant apps and websites, and the company’s refusal to allow rivals access to Apple Pay.
“The European Commission has since narrowed its focus to just the NFC chip, which can only be accessed by Apple Pay,” one of the sources said.
One of the sources said that the EU competition enforcer has been preparing a statement of objections for Apple, which could be sent next year. Regulations typically cite such documents as examples of anti-competitive practices.
The Covid-19 pandemic has contributed to the popularity of NFC-enabled payments. A number of analysts believe Apple Pay’s broad reach and superior experience in-store and on mobile websites gives it a competitive edge over rivals.
Other regulators and authorities are also keeping an eye on Apple Pay. A bill approved by the South Korean government last month forbids major app store operators, including Apple, from forcing developers to use their payment systems. A law passed in Germany in 2019 requires Apple to make its mobile payments system available to competitors for a reasonable fee.
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