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Apple Inc. (NASDAQ:AAPL) has agreed to allow its competitors to use its tap-and-go mobile payments system. This decision comes as a resolution to a long-standing antitrust investigation by the European Union.
What Happened: The EU’s antitrust regulators announced on Thursday that Apple will open up its tap-and-go mobile payments system to its competitors. This move effectively ends a four-year investigation that could have resulted in a substantial fine for the tech giant, reported Reuters.
The decision marks a significant shift for Apple, which has been under scrutiny by the EU for its business practices. The company is currently facing three investigations under the Digital Markets Act (DMA).
The European Commission, which acts as the EU’s antitrust enforcer, stated that Apple’s offer will be valid for 10 years. This move will allow competitors to effectively compete with Apple Pay for mobile payments with the iPhone in shops, offering consumers a wider range of safe and innovative mobile wallets to choose from.
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Apple’s tap-and-go technology, known as near-field communication (NFC), enables contactless payments with mobile wallets. The company will now allow developers to access its NFC to pre-build payment apps for rival mobile wallet providers.
Why It Matters: Apple’s decision to open its payment system follows a series of regulatory challenges in Europe. In June, the company faced an EU antitrust probe for allegedly violating digital rules, which could have resulted in a fine of up to 10% of its global revenue. The investigation was part of the Digital Markets Act, aimed at curbing the dominance of large tech platforms.
Earlier this year, Apple was hit with a $1.95 billion fine for anti-competitive practices against Spotify Technology SA and other music streaming services. The fine stemmed from a 2019 complaint by Spotify regarding Apple’s 30% App Store fees and associated restrictions.
In April, the European Commission labeled Apple’s iPadOS as a gatekeeper under the Digital Markets Act. This classification means Apple controls access to its platforms, further intensifying scrutiny over its business practices.
Price Action: Apple Inc’s stock closed at $232.98, marking a gain of 1.88% on Wednesday. The pre-market trading shows a slight decrease of 0.12%. Year to date, Apple’s stock has surged 25.50%, according to data from Benzinga Pro.
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Photo courtesy: Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
Posted In: AAPL
