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