Apple has reached a significant agreement with the European Union that will allow banks, payment services, and other app developers to utilize the technology behind Apple Pay to create tap-and-go payment services. This move comes after a lengthy antitrust investigation by EU regulators.
Implications for Consumers
This agreement, specific to the European Union, is expected to bring about a wave of new apps and services, providing consumers with more options for making payments on the go. Up until now, Apple had restricted access to the payment technology on iPhones, known as near field communication, effectively limiting users to Apple Pay.
EU Competition Policy Response
Margrethe Vestager, the European Commission’s executive vice president for competition policy, highlighted the significance of this development, stating that it fosters competition in a crucial sector by preventing Apple from excluding other mobile wallets from the iPhone ecosystem.
Background of the Settlement
The origins of this agreement can be traced back to a 2020 investigation that aimed to determine whether Apple was leveraging its dominant position in the smartphone market to stifle competition from other payment service providers. It is important to note that the agreement does not extend to the Apple Watch at this time.
Tech Regulation Impact in the EU
This policy shift by Apple underscores the influence of tech regulation in the European Union, leading to tangible changes in widely-used consumer products and services. Earlier this year, Apple also made concessions to comply with new competition rules, allowing access to rival app stores for iPhone and iPad users for the first time.
Global Tech Industry Response
The broader tech industry is experiencing a shift due to government policies worldwide. Companies like Google and Meta have also made adjustments to comply with regulations, such as altering search result displays and introducing new subscription services to meet regulatory requirements.
Future Regulatory Landscape
Regulatory scrutiny in Europe is expected to intensify, with Apple facing additional charges related to E.U. competition laws and appealing fines for anti-competitive behavior. Other tech giants like Google, Meta, Microsoft, and TikTok are also under investigation by European authorities.
