Apple attempts to escape EU fine by offering to open its NFC technology for rivals

The move comes after the European Commission launched an antitrust investigation into Apple's practices surrounding Apple Pay, suspecting that the company was unfairly restricting access to a key technology to maintain its dominance in the mobile payment market. The Commission's investigation stemmed from concerns that Apple's decision to limit the use of NFC on iPhones for Apple Pay could alone stifle competition and prevent other companies from developing their own mobile payment solutions. .

The solution proposed by Apple, if accepted by the Commission, could end the investigation and potentially spare the company from significant financial penalties. The Commission will, however, have to consult Apple's competitors and customers before making a final decision.

Although it does not hold the majority of smartphone sales nor is it the dominant mobile payment service in the EU, Apple Pay has grown in popularity, with more than 2,500 banks and more than 250 fintech and challenger banks joining. across Europe using this service.

Apple's efforts to address the EU's concerns come amid a broader crackdown on the company's business practices. The EU recently labeled Apple a “gatekeeper” under the Digital Markets Act (DMA), which empowers the Commission to regulate large technology companies that hold dominant positions in the digital market.

Earlier this year, Apple acknowledged the possibility of having third-party app stores on iPhones, but later challenged the EU's decision mandating competing app stores. Additionally, it appealed the inclusion of iMessage in the DMA's gatekeeper designation, arguing that iMessage's market share in Europe is too small to warrant regulatory review, which could prove true.

As Apple faces these regulatory challenges, it is clear that the company faces increasing pressure to address concerns about its competitive practices in the EU. The proposed NFC access could be a step in the right direction. However, it remains to be seen whether this will be enough to appease the Commission and avoid further regulatory scrutiny.