The European Commission has informed Apple that it abused its dominant position and restrict competition in markets for mobile wallets on iOS devices by limiting access to a standard technology used for contactless payments with mobile devices in stores.
Apple Pay is Apple's own mobile wallet solution on iPhones and iPads, used to enable mobile payments in physical stores and online. In particular, Apple Pay is the only mobile wallet solution that may access the necessary NFC input on iOS. Acording to The Commission Apple does not make it available to third-party app developers of mobile wallets.
The Commission's preliminary view is that Apple's dominant position in the market for mobile wallets on its operating system iOS, restricts competition, by reserving access to NFC technology to Apple Pay. This has an exclusionary effect on competitors and leads to less innovation and less choice for consumers for mobile wallets on iPhones. If confirmed, this conduct would infringe Article 102 of the Treaty on the Functioning of the European Union (‘TFEU') that prohibits the abuse of a dominant market position.
(The European Commission – 02.05.2022)
NAZALI TAX & LEGAL