Apple Says It Will Face An EU Antitrust Charge Over The NFC Chip, Which May Lead To Opening Up The Payment System To Rivals.
Since then, the European Commission has narrowed its focus to just the NFC chip, which only Apple Pay can access, one of the sources said.
Apple will be hit with an EU antitrust charge for its NFC chip technology, people familiar with the matter said, a move that puts it at risk of a potentially hefty fine and could force it to open up its mobile payment system to rivals.
The iPhone maker has been in the crosshairs of European Union antitrust chief Margrethe Vestagers since June last year, when she launched an investigation into Apple Pay.
Preliminary concerns were Apple’s NFC chip, which enables tap-and-go payments on iPhones, its terms and conditions on how the Apple Pay mobile payment service should be used on merchant websites and apps, and the refusal of the company to allow rivals access to the payment system.
Since then, the European Commission has narrowed its focus to just the NFC chip, which only Apple Pay can access, one of the sources said.
The EU competition enforcer is now preparing a charge sheet known as a statement of objections, which could be sent to Apple next year, one of the sources said. These documents usually establish practices considered anti-competitive by the regulator.
The Commission, which has three other cases against Apple, declined to comment. It can fine companies up to 10 percent of their global turnover for violating EU rules, which according to Apples 2020 revenue could reach $ 27.4 billion (roughly Rs 2.05.05 billion).
Apple, which has cited privacy and security concerns for its policy on Apple Pay, was not immediately available for comment.
Apple shares fell 1 percent to $ 139.6 (roughly Rs 10,450) in early trading. NFC-enabled payments have gained popularity due in part to the COVID-19 pandemic. Apple Pay’s broad reach and superior consumer experience on a mobile website or in-store give it a competitive advantage over rivals, according to some analysts.
Apple Pay is also on the radar of other regulators and authorities. South Korea passed a bill last month that bans major app store operators, including Apple, from forcing software developers to use their payment systems.
Germany passed a law in 2019 requiring Apple to open its mobile payments system to rivals for a reasonable fee. In the same year, the Dutch competition body launched an investigation into the App Store and the requirement that app developers use their payment systems for in-app purchases and pay a 30 percent fee during the first year.
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