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    Thursday, July 11, 2024

    European Commission Approved Apple’s Proposed Remedies in “Tap and Go” Antitrust Investigation

    The European Commission has approved Apple’s proposed remedies in the “Tap and Go” antitrust investigation.

    Apple, a prominent US technology corporation, has reached a compromise with the European Commission in an ongoing EU competition investigation into the company’s compensation structure. This compromise aims to prevent the imposition of substantial fines.

    Apple has made a legal commitment to provide competitors with access to its one-touch payment system, known as Tap and Go. This move is expected to enhance competition within the crucial payments sector, as stated by Margrethe Vestager, the European Union’s Competition Commissioner, in an official statement.

    In May 2022, a commission investigation provisionally concluded that the Apple Pay system may be in violation of EU competition regulations by limiting competitors’ access to crucial technology and distorting the market.

    The European union's top competition regulator, the commission, has expressed concerns regarding the access rules for developers surrounding the mobile wallet technology on Apple’s iOS operating system. These rules are believed to hinder innovation in the contactless payments sector.

    As the technology comes pre-installed on Apple devices, the limitations excluded competitors and resulted in reduced consumer options for payment services on Apple phones and tablets, according to the EU.

    For instance, if banks desire to make their cards compatible with contactless payment on the iPhone, this was previously only feasible through Apple Pay and Apple’s proprietary mobile wallet.

    The concessions were part of a significant European Union competition investigation into the American technology corporation, which could have potentially resulted in substantial financial penalties for the company, amounting to up to 10% of Apple’s annual revenue.

    Apple reported a total revenue of $383 billion for the fiscal year 2023. The company has been engaged in ongoing discussions with the European Commission regarding various competition-related matters, including tax arrangements with Ireland and the operations of its App Store.

    In March, the commission levied a €1.8 billion ($2 billion) fine against Apple for imposing unfair restrictions on competitors to its music streaming service, Apple Music, in response to a complaint filed by Spotify.

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