The European Commission recently announced it is accepting Apple’s pledges to open the Near Field Communication or NFC technology on its iPhones. The decision was made after a lengthy investigation initiated in 2020 which accused of Apple blocking third-party access to the key iPhone feature used for mobile payments and wallets.
How iPhone users could benefit from the opened payment tech
In the published report, the Commission agreed to the changes and plans laid by Apple earlier this year. These include opening up the payment system for third-party wallet providers and banks to utilize it for their services and apps without paying Apple.
More importantly, it lets users in the region set a different default mobile wallet other than Apple Wallet or Apple Pay. There are also no restrictions to the use of these services outside Europe.
Part of the commitments also allow outside companies and developers to take advantage of the double-click feature on the iPhone, which is utilized to launch the mobile wallet app. At the same time, competitors were given access to iOS security features like Face ID and Touch ID to authenticate payment transactions.
In addition, it mentioned transactions made using third-party wallets will use a new system called “Host Card Emulation mode” that provides the same level of security and experience as Apple’s on-device hardware security features to secure NFC payments.
The Apple iPhone 15 in green / © nextpit
It was also highlighted developers and rivals will have the ability to integrate other services into their NFC payment like digital IDs, tickets, boarding passes, transit cards, and more. With this, it provides an opportunity for rivals such as Google to fully deploy Google Wallet on iPhones.
The Commission has given Apple until July 25 to implement these changes while the commitments are said to be enforced for 10 years. An independent reviewer will also oversee the implementation.
Although the agreement also means the iPhone manufacturer will avoid any potential hefty fine from this antitrust probe, Apple faces another case in the bloc. In preliminary findings, the company was accused by the EU to have violated the Digital Markets Act. The Commission will be handling its final ruling in March 2025. If Apple is proven to breach the DMA, it could face a fine of up to 10 percent of its global revenue.
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Do you think these changes will ultimately benefit most users without comprising the Apple experience? We want to hear your opinion on the matter.
Source:
European Commission
