Apple Pay is anticompetitive, says EU in preliminary ruling

Image: Apple

The European Union has accused Apple of antitrust over its exclusion of rivals from its Apple Pay mobile payment system. The EU has sent Apple a formal statement of objections, with the preliminary view that Apple has abused its position in mobile wallet.

The Commission takes issue with the decision by Apple to prevent mobile wallet app developers from accessing the necessary hardware and software on its devices, to the benefit of its own solution, Apple Pay.

According to the EU, Apple's exclusionary behavior leads to less innovation and less choice for consumers.

The company will have the chance to respond to the Commission's list of objections in the initial stage of the antitrust proceedings. The EU notes that the sending of a Statement of Objections does not affect the outcome of an investigation.

Last year, the company was accused of unfairly punishing rival music streaming services. The EU can impose fines of up to 10 percent of Apple's global revenue as well as force changes to the company's business practices. The fines against Apple are likely to be much smaller.

The EU is leading the way in attempts to rein in the power of Big Tech according to the Commission's preliminary view against Apple. Two major legislative acts have been passed in the past weeks to counter the negative effects of digital giants. The Digital Services Act (DSA) requires companies to take tighter control of harmful content on their platforms, and the Digital Markets Act (DMA) allows smaller companies to compete with the largest corporations.

Apple objects to a number of provisions outlined by the EU, particularly those that loosen the company's grip over the App Store.