Apple hit with EU antitrust charge over its payment technology

Apple was hit with the European Commission’s antitrust charge. The directive is following the tech giant’s abuse of position in the market for mobile wallets on iOS devices.

Apple charged with distrust due to the NFC monopoly

On Monday EU antitrust regulators charged Apple for restricting rivals’ access to NFC technology. The move can result in a heavy fine for the tech giant. Additionally, it will also be forcing the firm to open up the payment system for its competitors. The Commission stated that it sent the charge sheet or statement of objections to the firm. The document details how it was abusing its dominant market position for mobile wallets on iOS devices.

The California-based firm can face fines adding up to 10 percent of its global turnover. The firm’s shares listed in Frankfurt fell by 0.7 percent following the news. This is a serious charge as over 2,500 banks in Europe use Apple Pay. Additionally, over 250 challenger banks and fintech also used this service. And, NFC chip allows easy and secure tap-and-go payments on iPads and iPhones.

More on the offense and charges

“We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple’s devices,” stated Margrethe Vestager. Vestager is the EU antitrust chief. “In our statement of objections, we preliminarily found that Apple may have restricted competition, to the benefit of its solution Apple Pay,” she explained.

Apple stated that it will continue engaging with the commission. “Apple Pay is only one of many options available to European consumers for making payments, and has ensured equal access to NFC while setting industry-leading standards for privacy and security,” stated the firm. Moreover, this is the second EU charge against the iPhone maker. Last year, the firm was accused of distorting the field in music streaming services. the previous charge was following a complaint from Spotify, another popular streaming platform.

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