Margrethe Vestager, the Executive Vice- President of the European Commission, confirmed today that Apple has been charged with abusing its market dominance by limiting mobile payments on its devices, which could result in a hefty fine.
The Commission had suspicions that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple's devices.
The Commission argues in its Statement of Objections that developers have been barred from accessing the necessary hardware and software to create their own payment services on Apple devices. Contactless payments are popular in Europe, but Apple Pay is the only option for in-store payments on the iPad and iPhone.
The Commission opened a dual review into Apple's in-app and Near Field Communication payment systems in June 2020, noting that the company's choice could stifle competition and therefore reduce consumer choice. The Commission says that today's announcement only relates to the input by third-party developers of mobile wallet for payments in stores and not online restrictions against or restrictions of access to Apple Pay for competing services.
In order to boost security, Apple limits third-party access to payments. It claims that it can prevent fraudulent payments with its own technology.
Apple has a list of exceptions that it argues go against EU antitrust rules. It could be some time before an official decision is reached after the company is invited to reply to the issues raised and request a meeting with officials.
Should Apple reply, we will update the article.
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