- Apple has announced its decision to open up NFC input access to third parties in the European Economic Area (EEA)
- Previously, only Apple Pay had access to the iPhone chip necessary for contactless payments
iOS users in the EEA will now have the option to utilize third-party alternatives to Apple Pay and Apple Wallet, as Apple has agreed to provide free access to NFC input.
This commitment is the result of an agreement between Apple and the European Commission under EU antitrust rules.
Apple’s past restriction on NFC chip access for Apple Pay competitors has now been resolved, potentially avoiding a violation of Article 102 of the Treaty on the Functioning of the European Union which prohibits “abuse of a dominant position”.
Apple has agreed to open up its tap-and-go technology before facing further investigation, effectively ending its dominance in the Apple Pay market.
Arrangements and amendments
To address competition concerns, Apple has made commitments to allow third-party access to NFC inputs in Host Card Emulation mode, establish fair eligibility criteria for developers, undergo independent review processes, and more.
After market testing these commitments, Apple has made additional amendments to extend access to industry-certified terminals, remove licensing requirements, and improve HCE architecture.
These commitments will be legally binding for 10 years and apply across the EEA, with Apple monitored by a trustee appointed by the Commission.
Implications for Apple
By relinquishing exclusivity over NFC chip access, Apple is complying with EU regulations and avoiding legal violations. While some users may remain loyal to Apple Pay, the option for third-party services is now available.
Despite this concession, Apple continues to face scrutiny in other areas, such as its compliance with Digital Markets Act regulations.
