Apple opening up access to payments on iPhones solves EU competition concerns

Banks and other potential rivals previously argued it’s unfair they’re forced to use software controlled by the tech giant.

Transcript

00:00A tech giant buckles in the pressure from Brussels.

00:05Apple has made concessions after the European Commission accused it of abusing its market

00:10dominance in mobile payments, avoiding potential antitrust fines.

00:15The American company had ensured that its own mobile wallet, Apple Pay, was the only

00:20tap-and-pay option on its iPhones.

00:22Now the company has agreed to allow rival mobile wallet developers to access its contactless

00:28payment technology free of charge.

00:30From now on, Apple can no longer use its control over the iPhone ecosystem to keep mobile wallets

00:38out of the market.

00:42Competing wallet developers as well as consumers will benefit from these changes, opening up

00:48innovation and choice while, of course, keeping payments secure.

00:54Mobile payment apps rely on a technology called near-field communication to allow customers

00:59to pay with a simple tap of their device.

01:02The Commission first raised concerns that Apple was illegally restricting access to

01:07this critical technology back in 2022.

01:11It has since drawn out concessions from the Silicon Valley giant.

01:16To address these concerns, Apple offered a set of commitments earlier this year.

01:21The deal means iPhone users in 30 European countries will now be able to pay securely

01:38using other mobile wallets and set them as their default payment option.

01:43It's another win for Commissioner Vestager, the EU's competition chief who has earned

01:48a global reputation as a thorn in Big Tech's side.

01:52I think it's a first, but that's a first for everything.

01:58And of course, I would hope that Apple would learn from this experience because as you

02:06will know, we have a number of non-compliance cases against Apple with their DMA obligations.

02:15And I think it would be a good thing for Apple's rivals and for customers if those could be

02:23settled by full compliance with the DMA.

02:26Brussels has also said that Apple's App Store rules breach the Digital Markets Act because

02:33it squeezes out innovative competitors.

02:35It could lead to a potential fine of up to 10% of the company's global annual turnover.