EU regulators claim that Apple is breaking competition laws by limiting rivals’ access to technology that is key to making contactless payments, The Guardian reports.
The European Commission said today that Apple “set the rules” on its platform and unfairly benefits its own service. The European Commission expressed concern that it has been limiting access to a technology called near field communication.
The commission’s executive vice president in charge of competition policy, Margrethe Vestager, said that on a preliminary basis, the commission found Apple abused its dominant position and restricted access to key inputs that are necessary to develop and run mobile payments apps.
Vestager said that evidence indicates some other app developers did not go ahead with their plans.
Apple Pay contactless payments service is the biggest NFC-based mobile wallet on the market, the commission said.
Vestager said that the preliminary conclusion that the commission has reached relates to mobile payments in shops. Because Apple has excluded others from being able to be a part of the same market, Apple shielded its Apple Pay wallet from the competition.
If proven, it means that Apple could have abused a dominant position, which is illegal under commission rules.
The commission issued a statement of objections and gave the massive company a chance to respond.
If Apple did abuse its position, it could face fines worth up to 10 percent of its global revenues, which would be about $365 billion in 2021.
An Apple spokesperson said that Apple Pay is one of many options available in Europe and has ensured equal access.
It is not the only investigation Apple is under in Europe. Regulators in Europe are also investigating Apple over how it may be disadvantaged rivals because it takes up to a 30 percent fee on purchases and subscriptions made through its App Store. Spotify first lodged the complaint in 2019.
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