The European Commission has announced that it’s 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,” according to the EU.
The Commission says it takes issue with the decision by Apple to prevent mobile wallets app developers, from accessing the necessary hardware and software (“NFC input”) on its devices, to the benefit of its own solution, Apple Pay.
“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,” says EU Executive 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 EU’s Statement of Objection says it takes issue only with the access to NFC input by third-party developers of mobile wallets for payments in stores. It doesn’t take issue with the online restrictions nor the alleged refusals of access to Apple Pay for specific products of rivals that the Commission announced that it had concerns when it opened the in-depth investigation into Apple’s practices regarding Apple Pay on June 16, 2020.
A Statement of Objections is a formal step in EU investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The addressees can examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities.
There are no legal deadlines for bringing an antitrust investigation to an end. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the undertakings concerned cooperate with the EU and the exercise of the rights of defense.
The EU is a political and economic union of 28 member states that are located primarily in Europe. Its policies aim “to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development.”
Article provided with permission from AppleWorld.Today