Apple Pay under scrutiny by EU for possible anti-competitive payment practices
European Union antitrust investigators have begun asking payment companies for feedback on Apple Pay, potentially signaling the launch of an investigation into anti-competitive practices.
The European Union has once again turned a critical eye toward Apple. This time, their main focus is on Apple Pay. The European Commission is concerned that Apple's choice to limit Apple's built-in Near-Field Communication chip to Apple Pay makes it impossible for third-party companies to break into the mobile payment market.
In an attempt to gather more information prior to the launch of a formal investigation, EU antitrust investigators have begun asking payment companies for feedback on Apple Pay, according to MLex.
Some banks and rival payment services have claimed that these restrictions make alternative payment services less attractive.
Apple has argued that limiting access to the NFC chip provides tighter security, especially when handling sensitive banking data. They also argue that this is one of the reasons consumers choose Apple Pay in the first place.
EU competition commissioner Margrethe Vestager has said she is aware that Apple had been limiting access to the iPhone's NFC chip. She points out that other companies, such as Google and Samsung, have not triggered a probe. This is because smartphones running Android operating systems allow all payment apps access to the device's NFC chip.
In December, Apple had settled a complaint with a Swiss payment company, TWINT, to avoid such a probe.
Australian banks had also taken issue with Apple Pay for similar reasons, but ultimately resulted in them backing down and adopting Apple Pay support.
Apple is still in the midst of another anti-trust probe regarding their self-preferential practices, centered largely around their long-running spat with Spotify.
The European Union has once again turned a critical eye toward Apple. This time, their main focus is on Apple Pay. The European Commission is concerned that Apple's choice to limit Apple's built-in Near-Field Communication chip to Apple Pay makes it impossible for third-party companies to break into the mobile payment market.
In an attempt to gather more information prior to the launch of a formal investigation, EU antitrust investigators have begun asking payment companies for feedback on Apple Pay, according to MLex.
Some banks and rival payment services have claimed that these restrictions make alternative payment services less attractive.
Apple has argued that limiting access to the NFC chip provides tighter security, especially when handling sensitive banking data. They also argue that this is one of the reasons consumers choose Apple Pay in the first place.
EU competition commissioner Margrethe Vestager has said she is aware that Apple had been limiting access to the iPhone's NFC chip. She points out that other companies, such as Google and Samsung, have not triggered a probe. This is because smartphones running Android operating systems allow all payment apps access to the device's NFC chip.
In December, Apple had settled a complaint with a Swiss payment company, TWINT, to avoid such a probe.
Australian banks had also taken issue with Apple Pay for similar reasons, but ultimately resulted in them backing down and adopting Apple Pay support.
Apple is still in the midst of another anti-trust probe regarding their self-preferential practices, centered largely around their long-running spat with Spotify.
Comments
Payments now. Pathetic. And ridiculous.
apple:
gov: thank you for the lovely lunch, it is just terrible how apple is making it harder for you to give me and my friends invites to lunch as often.
Now if Apple opened it up for other type of things, great. This is typical EU sticking there nose into yet another American Company to steal more money. Seems the EU just can't innovate on their own. I guess it's rolling back to Apple's turn once again.
Here's a idea, you BANKS go out and release your own phone for people to buy and do whatever YOU want with your own product!! Oh wait, you want someone else to do all the word, and Innovate and spend tons on R&D and then just benefit from it.
Main point is that Apple is really limiting developers to make use of NFC and deliver additional services on top of apple pay...
Apple has always been up front with everything it offers. Nobody forced people to buy their phones and nobody is forcing s/w or payment companies to be on Apple's platform. The EU (or any other entity) has the right to retroactively tell Apple how it should design its products or platforms.
How is it anticompetitive? Every company wants to build and hold some level of competitive advantage. And this is very competitive!
Just to give everyone a free lunch is anti-competitive.
one more thing... its not just about apple pay, but also other non payment services that can use NFC chip.
To other comments: Contactless payments (NFC) was in EU before apple pay and terminals were pretty common. Which made the adoption much smoother than in the us where nfc terminals were not available that much... apple pushed retailers to get them/ accelerated the adoption. So i guess for US consumers it was big move forward. On the other hand in europe people got used to contactless cards long before and they keep using them even if you can use apple pay. Apple pay is basicaly emulating card and encrypting the data/communication - ok better, i can have slimmer wallet.
EU: that is anti-competitive because it doesn’t allow other store owners to use your store to sell their stuff
Me: *slap forehead*