Apple Pay NFC tech in iPhone will likely get opened up soon in the EU

Posted:
in iPhone edited April 19

The European Commission is set to approve Apple's opening up of Apple's NFC platform to third-party mobile wallets as soon as May, which could help save the iPhone maker from a $40 billion fine.

NFC in the iPhone is chiefly used for Apple Pay
NFC in the iPhone is chiefly used for Apple Pay



In January, Apple agreed that it would open up its NFC hardware to any developer for the purposes of performing contactless payments. Months later, it appears that European antitrust regulators are close to determining if it's enough to get Apple out of legal trouble.

The European Commission will allegedly be offering its approval of Apple's work in the near future. People familiar with the project speaking to Reuters say that the approval could happen as soon as May.

If approved it will help Apple avoid paying a hefty fine to the EU over accusations it held back rivals.

Access to avoid penalties



The European Commission has been investigating Apple Pay since 2019. At the time, it was believed Apple may have been acting in an anticompetitive manner by limiting Apple's NFC chip access to Apple Pay, ever since 2015.

The limitation meant third-party payment processors couldn't use the same hardware, and had no choice but to play ball with Apple and go through its payment system. At the time, it was thought that the lack of access meant there couldn't be true competition in NFC payments, at least on Apple hardware.

By February 2023, Apple was defending against the accusations from the Commission, all to avoid being fined. If the EU found Apple guilty of antitrust violations, it faced potentially considerable fines.

That fine, which could be up to 10% of Apple's global annual turnover, could be valued as much as $40 billion.

In January 2024, Apple announced it was making changes to iOS to comply with the inbound EU Digital Markets Act. As part of this, Apple was to introduce new APIs to use its NFC hardware, specifically aiming at banking and wallet apps operating in the European Economic Area.

This access would allow banks to avoid having to use Apple Pay or the Apple Wallet, and therefore any potential transaction charges Apple would normally apply through using its services.

Apple was asked to make some small changes after the EU received feedback from Apple Pay's competitors and customers. As Apple may still have to make more fine-tuning of its plans, report sources say that the May approval could be delayed, but the Commission is aiming for it to occur by the summer.



Read on AppleInsider

Comments

  • Reply 1 of 9
    If they don't open iDevices up for normal software installation worldwide they need to be fined billions anyway.
  • Reply 2 of 9
    danoxdanox Posts: 2,963member
    If they don't open iDevices up for normal software installation worldwide they need to be fined billions anyway.
    They won't the EU in time like different languages branching off from one common one that small fork in the road (2024) will only get bigger with EU being left behind the rest of the world tech wise as time goes on.
    edited April 20 tmaywatto_cobra
  • Reply 3 of 9
    doggonedoggone Posts: 385member
    Hopefully this won't mean someone will be able to fake transactions and steal money from me.  
    I've just returned from the UK and I used Apple Pay successfully for nearly every transaction.  Still easier to use than in the US.
    luke hamblywilliamlondonwatto_cobra
  • Reply 4 of 9
    sflocalsflocal Posts: 6,099member
    What is going to happen is when a nefarious user successfully steals money from a side loaded app, or even NFC (if completely open), then all the news-sites, trolls, and Apple-haters will jump in and point all the fingers on Apple for having such "blatant security holes".

    Reminds me years ago when Apple was all over the news for getting hit with a security exploit, only for a small tidbit of info at the very end stated that it was a jailbroken iPhone and the app in question came from Cydia.  That's how sketchy people are.
    williamlondonwatto_cobra
  • Reply 5 of 9
    avon b7avon b7 Posts: 7,752member
    danox said:
    If they don't open iDevices up for normal software installation worldwide they need to be fined billions anyway.
    They won't the EU in time like human languages is but a small fork in the road that will get bigger over time with EU being left behind the rest of the world.
    This makes no sense. Literally everything an iPhone does is to satisfy the exact same needs which are universal in nature to everyone. 

    Although you may think otherwise, the iPhone is far from magic and its success is entirely dependent on the exact same factors that have existed for decades. The same factors that all users and manufacturers depend on equally. 

    Absolutely nothing would change in the EU without Apple. Literally nothing because those factors would be accommodated just like they always have been.

    Communication. Transactions. Creation and consumption. 

    Not having an iPhone available would simply do more damage to Apple through lost sales which would end up in the hands of competitors. 

    Think about this for a second. An iPhone depends on ICT infrastructure to communicate. Without that communication, how much use is an iPhone? Using Wi-Fi hanging off a fixed internet connection would lose its sparkle pretty fast. 

    Which companies are responsible for the bulk of that? Nokia, Ericsson and Huawei? Are any of those US companies? Aren't you glad those two EU companies are there? 

    Without iOS, iPhones or Apple, the EU would be just fine. I would try to not forget that. 
  • Reply 6 of 9
    avon b7avon b7 Posts: 7,752member
    sflocal said:
    What is going to happen is when a nefarious user successfully steals money from a side loaded app, or even NFC (if completely open), then all the news-sites, trolls, and Apple-haters will jump in and point all the fingers on Apple for having such "blatant security holes".

    Reminds me years ago when Apple was all over the news for getting hit with a security exploit, only for a small tidbit of info at the very end stated that it was a jailbroken iPhone and the app in question came from Cydia.  That's how sketchy people are.
    Is this happening on Android? 

    I've been using 'open NFC' for years without issue. 

    Do you think the APIs and security checks on apps in this area will be inferior to those on Android? 
    edited April 21
  • Reply 7 of 9
    Apple could offer the user a option in settings to have no third party pay systems  Would be nice to see how many Apple users would this option.

    watto_cobra
  • Reply 8 of 9
    sflocalsflocal Posts: 6,099member
    avon b7 said:
    sflocal said:
    What is going to happen is when a nefarious user successfully steals money from a side loaded app, or even NFC (if completely open), then all the news-sites, trolls, and Apple-haters will jump in and point all the fingers on Apple for having such "blatant security holes".

    Reminds me years ago when Apple was all over the news for getting hit with a security exploit, only for a small tidbit of info at the very end stated that it was a jailbroken iPhone and the app in question came from Cydia.  That's how sketchy people are.
    Is this happening on Android? 

    I've been using 'open NFC' for years without issue. 

    Do you think the APIs and security checks on apps in this area will be inferior to those on Android? 
    And?? You want a lollipop to suck on?

    I stopped reading all the countless security flaws with Android, and that includes issues with its NFC implementation and apps that use it.  It is well known that security problems with Android rarely makes any news because everyone knows that Android is a joke where security is concerned.  Go ahead and preach how you'd rather have Android's open-to-the-world model, with all the problems associated with it than Apple's walled-garden approach.  
  • Reply 9 of 9
    avon b7avon b7 Posts: 7,752member
    sflocal said:
    avon b7 said:
    sflocal said:
    What is going to happen is when a nefarious user successfully steals money from a side loaded app, or even NFC (if completely open), then all the news-sites, trolls, and Apple-haters will jump in and point all the fingers on Apple for having such "blatant security holes".

    Reminds me years ago when Apple was all over the news for getting hit with a security exploit, only for a small tidbit of info at the very end stated that it was a jailbroken iPhone and the app in question came from Cydia.  That's how sketchy people are.
    Is this happening on Android? 

    I've been using 'open NFC' for years without issue. 

    Do you think the APIs and security checks on apps in this area will be inferior to those on Android? 
    And?? You want a lollipop to suck on?

    I stopped reading all the countless security flaws with Android, and that includes issues with its NFC implementation and apps that use it.  It is well known that security problems with Android rarely makes any news because everyone knows that Android is a joke where security is concerned.  Go ahead and preach how you'd rather have Android's open-to-the-world model, with all the problems associated with it than Apple's walled-garden approach.  
    When it comes to banking, if there are known limitations, a feature doesn't fly. The banks are pretty clear on this. 

    That's understandable. They haven't pulled away from NFC and that says it all. It's passed the litmus test. 
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