The European Union has officially objected to Apple yet again. This time, the European Commission has issued a Statement of Objections to the company for limiting third party access to its Apple Pay NFC system.
According to a MacRumors report, the Cupertino based giant is facing backlash for restricting third party payment services from accessing the NFC payment feature on its iPhones. In other words, the brand is basically restricting competition in mobile wallets on the iOS platform as a whole. The European Commission also added that further investigation will be commenced before any actions are taken against the company.
The original statement reads, “The European Commission has informed Apple of its preliminary view that it abused its dominant position in markets for mobile wallets on iOS devices. By limiting access to a standard technology used for contactless payments with mobile devices in stores (‘Near-Field Communication (NFC)’ or ‘tap and go’), Apple restricts competition in the mobile wallets market on iOS.” Furthermore, the European Commission’s Executive Vice President Margrethe Vestager said that the access to NFC is a requirement for any of Apple’s competing mobile wallet services
She further added that “Developing a mobile payment application is costly. Investment may only be worth it if developers can reach both Apple and Android customers. Evidence on our file indicates that some developers did not go ahead with their plans as they were not able to reach iPhone users. This behavior stifled innovation and prevented competition in the mobile wallet market. As a result, European consumers have little choice of mobile payment solutions when paying in shops.” In its defense, Apple cited security risk as the reason for limiting NFC access but the regulator’s investigation has not found any evidence of said risk.
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