EU regulators have accused Apple of violating competition law by restricting competitors’ access to technology that is key to making contactless payments by unfairly favoring its own Apple Pay service.
The European Commission said Monday that Apple was “setting the rules” for its closed platform and expressed concern that it was restricting access to a technology called near-field communication (NFC), which rivals need to make push and move payments. in stores using mobile wallets.
“We have found in advance that Apple has abused its dominant position,” said Margrethe Vestager, executive vice chairman of the commission in charge of competition policy.
Apple has restricted access to key data needed to develop and launch mobile payment applications, so-called “mobile wallets.” The evidence in our file shows that some developers did not fulfill their plans because they failed to reach iPhone users.
The commission said the Silicon Valley company’s Apple Pay service was “the largest NFC-based mobile portfolio on the market.”
“The preliminary conclusion we reached today concerns mobile payments in stores,” Vestager said. “By excluding others from the game, Apple has unfairly protected its Apple Pay wallet from competition. If proven, this behavior would constitute an abuse of a dominant position that is illegal under our rules. “
The Commission has published a statement of objections detailing the grounds on which it believes the company “may have unlawfully distorted competition in Apple’s mobile wallet market” and allows the company $ 2.5 trillion (£ 2 trillion). ) to answer.
Apple could face fines of up to 10% of its global revenue of $ 365 billion in 2021 if the allegations are confirmed.
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“We created Apple Pay to provide an easy and secure way for consumers to digitally present their existing payment cards and for banks and other financial institutions to offer contactless payments to their customers,” a company spokesman said.
“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. 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.
European regulators are also investigating how Apple could disadvantage competitors by charging up to 30% for fees for subscriptions and subscriptions made through its App Store, which they say has ultimately led to higher prices for consumers following a complaint. filed by music streaming service Spotify in 2019.
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