Apple has been hit with an antitrust charge by the European Union for excluding competitors from its Apple Pay mobile payment system. The EU has sent Apple a formal “Statement of Objections” with the preliminary opinion that Apple has abused its dominant position in iOS mobile wallets.
“The Commission is challenging Apple’s decision to prevent mobile wallet application developers from accessing the necessary hardware and software (” NFC input “) on their devices in favor of its own Apple Pay solution,” the ruling said. “Today’s Statement of Objections only challenges access to NFC input from third-party mobile payment wallet developers.”
According to the EU, Apple’s exclusionary behavior “leads to less innovation and less choice for consumers for iPhone mobile wallets.”
This is only the initial official stage of the antitrust proceedings against Apple
This is only the initial official stage of the antitrust proceedings against Apple and the company will have a chance to respond to the Commission’s list of objections. The EU notes that sending a statement of objections “does not prejudge the outcome of the investigation”.
“Apple Pay is just one of many options available to European consumers to make payments, and ensures equal access to NFC while setting industry-leading privacy and security standards,” Apple spokeswoman Hannah Smith told The Verge. . “We will continue to work with the Commission to ensure that European consumers have access to the payment option of their choice in a safe and secure environment.
Today’s decision follows allegations last year that the company unfairly sanctioned competing music streaming services. The EU has the ability to impose fines of up to 10 percent of Apple’s global revenue ($ 36 billion), as well as impose changes in the company’s business practices. In practice, however, all fines upheld against Apple’s possible appeal against the allegations will be much lower.
The Commission’s preliminary view against Apple again shows that the EU is leading the way in trying to seize the power of big technology. In recent weeks, the bloc has passed two major pieces of legislation designed to counter the negative effects of digital giants. These are the Digital Services Act (DSA), which forces companies to take stricter control over the harmful content of their platforms, and the Digital Markets Act (DMA), which aims to level the playing field by enabling smaller ones. companies to compete with the largest corporations.
Apple has objected to a number of regulations outlined by the EU, especially those that loosen the company’s grip on the App Store (from which Apple raises significant revenues).
Updated May 2 2:15 PM ET: Updated to add a statement from Apple.
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