EU Commission thinks Apple abusing its dominance for mobile payments
Apple has abused its dominant position in markets for mobile wallets on iOS devices, EU Commission says in a preliminary decision. If confirmed, the company could be forced to open its payment system to competitors. By limiting access to a standard technology (tap and go) used for contactless payments with mobile devices in stores, Apple restricts competition in the mobile wallets market on iOS, according to the Commission.
“Mobile payments play a rapidly growing role in our digital economy. It is important for the integration of European Payments markets that consumers benefit from a competitive and innovative payments landscape, saud Commission vice president Margrethe Vestager.
“We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices. In our Statement of Objections, we preliminarily found that Apple may have restricted competition, to the benefit of its own solution Apple Pay. If confirmed, such a conduct would be illegal under our competition rules.”
The Commission says Apple Pay is Apple’s own mobile wallet solution on iPhones and iPads, used to enable mobile payments in physical stores and online. Apple’s iPhones, iPads and software form a “closed ecosystem”. Apple controls every aspect of the user experience in this ecosystem, including mobile wallet developers’ access to it.
The Commission’s preliminary view is that Apple’s dominant position in the market for mobile wallets on its operating system iOS, restricts competition, by reserving access to NFC technology to Apple Pay.
“This has an exclusionary effect on competitors and leads to less innovation and less choice for consumers for mobile wallets on iPhones”, the Commission says.
A Statement of Objections is a formal step in Commission investigations into suspected violations of EU antitrust rules.
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