EU accuses Apple of breaking competition law over contactless payments

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The European Commission accused Apple of abusing its market position.

The US company may have broken competition law by preventing rivals from accessing itstap and go technology.

Apple promised to engage with the Commission.

It could be fined 10% of its global turnover if the charges are upheld.

EU Vice- President Margrethe Vestager said in a statement that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on its devices.

The EU official who is in charge of competition policy said that Apple may have restricted competition to benefit its own solution.

According to the Commission, this behavior from Apple has an exclusionary effect on competitors and leads to less innovation and less choice for consumers.

The tech giant said its payment system was only one of many options available to European consumers.

It added that it had set industry-leading standards for privacy and security.

The company said in a statement that it designed Apple Pay to provide an easy and secure way for users to digitally present their payment cards and for banks and other financial institutions to offer contactless payments for their customers.

We will continue to work with the Commission to make sure European consumers have access to the payment option of their choice.

The EU antitrust regulators did not find any evidence that a more open design posed a higher security risk.

Evidence on our file shows that Apple's conduct cannot be justified by security concerns.

The Commission accused Apple of anti-competitive practices when it launched Apple Pay.

Image source, Getty Images

More than 2,500 banks in Europe use Apple Pay, and around a third of the market in Europe uses Apple phones. The EU will implement new rules for technology firms next year.

Apple was accused by the EU of distortion of competition in music streaming markets after rival company Spotify lodged a complaint.