Brussels sees signs that the company has limited third-party access to its terminal technology, an illegal practice in Europe
The European Commission sees indications of abuse by Apple in its mobile payment system. Brussels estimates in its preliminary report that the US company is using its dominant position by limiting access to wireless NFC technology needed for mobile phone payments, which in practice hurts competition and favors the Apple Pay service. .
“We see evidence that Apple is limiting third-party access to technology needed to develop alternative mobile wallet solutions on its devices,” said Margrethe Vestager, European Commission Vice-President and Competition Commissioner.
According to the Brussels investigation, which began in June 2020, the tech giant does not allow or restrict developers’ access to technology used in contactless payments. In this way, its solution -Apple Pay- is the only alternative with access to the NFC mechanism in the company’s terminals and in those using the iOS operating system.
In addition, any company that wants to develop an application that can access the NFC technology of Apple devices has to pay a sum of money to the company. If the Community Executive’s suspicions are confirmed, “it would be illegal conduct within our competition rules,” Vestager added.
According to the company, the restrictions on this technology are responding to security reasons and trying to preserve user data. However, the European Commission does not share this view and its Vice-President assured that the EU takes “security very seriously”. In its preliminary investigation, the Community Executive found “no evidence pointing to such a risk.”
Instead, Apple’s commitment to “create a closed ecosystem”, “set the rules of the game” and prevent competition from reaching its users has been followed, which is an illegal practice within the EU.
Brussels fears that these restrictions exclude competition, weaken innovation in an area with high development potential and undermine consumers’ freedom of choice when paying with iPhone terminals.
By sending the statement of allegations, the tech giant gains access to all documentation. The next step in the procedure is a written response from Apple to the European allegations, a process that does not have a closed calendar.
This is one of the many things that have been opened in the community bloc for digital platforms to comply with community rules. In the case of Apple, Brussels is conducting several investigations into its system for streaming music and selling and distributing digital books.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
