Yahoo Finance EU accepts Apple's plan to allow third parties access to tap-and-go payment system
July 11 (UPI) -- The European Union agreed with Apple's commitment on Thursday to allow third-party rivals to access its tap-and-go payment technology, closing out a probe that had dragged on for four years.
The EU opened its investigation into Apple Pay in 2020, examining the iPhone's dominance in the market and how its exclusive tap-and-go technology could limit competition. The tap-and-go technology allows iPhone owners to use their devices to pay for items.
Apple offered to give third parties access after the European Commission found in 2022 that Apple Pay did limit competition by restricting competitors.
"It is safe and convenient to pay with your phone," Margrethe Vestager, executive vice president in charge of competition policy with the EU, said in a statement. "Apple has committed to allow rivals to access the tap-and-go technology of iPhones.
"Today's decision makes Apple's commitments binding. It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone ecosystem."
The EU said Apple's commitment will remain in place for 10 years and will be monitored by a trustee appointed by Apple. That trustee will also report to the commission over the same time.
"From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops," Vestager said. "So, consumers will have a wider range of safe and innovative mobile wallets to choose from."
Apple told CNBC that it is providing developers in the European Economic Area with an option to enable its contactless payments and contactless transactions "for car keys, closed-loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and even tickets from within their iOS apps using Host Card Emulation based APIs."
