Concretely, developers will now be able to use this hardware solution as a basis for offering software solutions without going through Apple Pay, Apple's in-house system.
This is a real blow for Apple. The Apple brand will lose the monopoly on control of its NFC chip on millions of iPhones. The European Commission has just judged this position taken by Apple as non-compliant with the rules in force regarding free competition. In order to avoid a fine of almost 40 billion dollars, Apple therefore presented a plan to open up its system to the Commission, which it has just accepted.
It is safe and convenient to pay with your phone.@Applehas committed to allow rivals to access the ‘tap and go’ technology of iPhones. Today’s decision makes Apple’ commitments binding. It opens up competition in this crucial sector.https://t.co/oyidbOOXeW
— Margrethe Vestager (@vestager)July 11, 2024
In a press release, the President of the Commission, Margrethe Vestager, welcomes this favorable outcome for the consumer. She judges that Apple “opens up competition in this crucial sector” with this change. For users, these changes should have more major repercussions.
In particular, it will be possible to pay without using Apple Pay. European banking institutions will be able to use (for the next 10 years) their own software system. They should integrate it into their applications in the coming months.
Apple still under investigation
The resolution of this conflict, which has lasted for several months, with the European Commission, does not put Apple out of reach. Indeed, the apple brand is still under investigation for other potential violations of free competition rules. It is notably accused by Spotify of favoring its own music streaming service (Apple Music) at the expense of the competition.
Another investigation, not yet opened however, could look into “basic technology costs” in the coming weeks. These payments were implemented by Apple to replace the 30% commission taken on in-app purchases in the App Store.
Developers are now free to offer applications outside the App Store, in practice they no longer owe anything to Apple. But the Apple brand has found a solution with these “basic technology costs”. The European Commission is currently studying the subject and could open an investigation in the coming weeks. Apple faces a fine of 36 billion euros if the DMA violation is proven.
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By : Keleops AG
