Apple will allow third-parties in the EU access to the iPhone NFC chip
Apple has announced plans to open up its onboard iPhone NFC technology to third-party mobile payment providers, allowing them to offer their services across the EU.
Apple's iPhone NFC to open to third-party devs post EU probe
Since the launch of Apple Pay in 2015, Apple has barred third-party payment systems from using its near-field communication (NFC) technology for contactless payments. Now, the company plans to change that -- at least in the European Union.
While it was first rumored that Apple would open access in December, the company has now gone on record saying it will open access in the EU.
"Through our ongoing discussions with the European Commission, we have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet," Apple told the Wall Street Journal.
As The Verge points out, there's no reason to believe that Apple has any plans of opening the technology outside of the EU at this time.
Apple would be obligated to allow access for ten years and would be liable for fines of up to 10% of its worldwide annual turnover if it chose not to honor them.
In May, EU regulators had ramped up an investigation into Apple over its practice of restricting third-party access to its onboard NFC technology.
The European Commission has accused Apple of engaging in anticompetitive behavior since the launch of Apple Pay in 2015. The commission is concerned that Apple's restriction of the iPhone's built-in NFC chip to Apple Pay is preventing third-party companies from entering the mobile payment market.
In 2019, EU investigators asked payment companies for feedback on Apple Pay. They were concerned that Apple's decision to limit the iPhone's NFC chip to only work with Apple Pay could prevent other companies from entering the mobile payment market.
Several governmental agencies have criticized Apple for restricting access to NFC technology on their devices. Australian banks were among the first to take issue with Apple Pay shortly after its release. They attempted to boycott the service to negotiate access to the NFC hardware within Apple devices for third-party use.
However, the banks eventually backed down after the Australian Competition and Consumer Commission denied the boycott request in 2017.
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Comments
On my phone, I choose which system to use and that is the default.
Now I hope that non-payment options become available like NFC for transport validation.
That's a very weird way of looking at the world.
Its not
It is not open for all to use and that's why, for example, iPhone users in Barcelona cannot use the T-Mobilitat app on public transport.
Apple limits choice so hopefully this pressure from the EU will change that.
The difference here is that limiting access to the NFC hardware meant users only had one choice for NFC payments: Apple Pay.
And Apple took a cut of everything.
There is no problem with that but what you want might not be what others want.
My wife doesn't want only one option forced on her for contact less phone payments. That is the current situation.
She wants choice. Is there any reason she should be denied that by Apple?