EU readies 'antitrust charges' against Apple Pay for locking rivals out of iPhone NFC chip
(2021/10/06)
- Reference: 1633551350
- News link: https://www.theregister.co.uk/2021/10/06/eu_apple_nfc/
- Source link:
Apple's decision to only allow Apple Pay to access the NFC chip in iPhones could result in the Silicon Valley giant paying hefty anti-monopoly fines in Europe.
The EU is set to file anti-competitive charges against Cupertino regarding its tap-to-pay system, Reuters [1]reported , citing sources. Euro antitrust watchdogs are apparently not happy that the NFC chips in iPhones and iPads are restricted to the iGiant's Pay software, unfairly locking out alternative wireless payment apps.
The charges will be the result of a European Commission [2]investigation that started last year into Apple's terms and conditions with merchants, the limited access to the NFC hardware, and more.
[3]
"It is important that Apple's measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices," said Competition Commissioner Margrethe Vestager in 2020. "I have therefore decided to take a close look at Apple's practices regarding Apple Pay and their impact on competition."
[4]
[5]
That probe zeroed in on the built-in NFC electronics, which are tightly integrated with Apple Pay and not open to rival payment systems. The European Commission argued that the super-corporation's design choices "may distort competition and reduce choice and innovation."
Now, the EU's competition enforcer is reportedly drawing up a charge sheet outlining the alleged anti-competitive behavior, which could be sent to Apple next year.
[6]One-size-fits-all chargers? What a great idea! Of course Apple would hate it
[7]Sort-of Epic win as judge kills Apple ban on apps linking to outside payment systems
[8]They've only gone and done it – South Korea forces Apple, Google to allow alternative app store payment systems
[9]Apple's iPhone computer vision has the potential to preserve privacy but also break it completely
Apple's in-house payment systems are, or have been, in the cross-hairs of various nations, from Europe to America to Australia.
South Korea in August [10]passed legislation forcing Google and Apple to allow the use of third-party payment systems for app and in-app purchases, which Google decided [11]not to fight.
[12]
Apple also [13]settled an antitrust case over the monopolistic nature of its payment system in which it agreed to make some concessions in the United States. Similarly, as a [14]result of Epic's legal action against Apple, the iGiant said will allow apps to direct their users to alternative payment platforms.
Apple did not immediately respond to requests for comment. EU spokesperson Arianna Podesta told us: "We have no comment – this investigation is ongoing." ®
Get our [15]Tech Resources
[1] https://www.reuters.com/technology/exclusive-eu-antitrust-regulators-charge-apple-over-its-nfc-chip-tech-sources-2021-10-06/
[2] https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1075
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/09/23/eu_one_charger_plan/
[7] https://www.theregister.com/2021/09/10/apple_epic_judgement/
[8] https://www.theregister.com/2021/09/01/south_korea_anti_google_bill_passed/
[9] https://www.theregister.com/2021/08/16/ai_vision_apple/
[10] https://www.theregister.com/2021/09/01/south_korea_anti_google_bill_passed/
[11] https://www.theregister.com/2021/10/06/google_to_comply_with_south_korean_payment_law/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2021/08/27/apple_vs_cameron_et_al_settlement/
[14] https://www.theregister.com/2021/09/10/apple_epic_judgement/
[15] https://whitepapers.theregister.com/
The EU is set to file anti-competitive charges against Cupertino regarding its tap-to-pay system, Reuters [1]reported , citing sources. Euro antitrust watchdogs are apparently not happy that the NFC chips in iPhones and iPads are restricted to the iGiant's Pay software, unfairly locking out alternative wireless payment apps.
The charges will be the result of a European Commission [2]investigation that started last year into Apple's terms and conditions with merchants, the limited access to the NFC hardware, and more.
[3]
"It is important that Apple's measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices," said Competition Commissioner Margrethe Vestager in 2020. "I have therefore decided to take a close look at Apple's practices regarding Apple Pay and their impact on competition."
[4]
[5]
That probe zeroed in on the built-in NFC electronics, which are tightly integrated with Apple Pay and not open to rival payment systems. The European Commission argued that the super-corporation's design choices "may distort competition and reduce choice and innovation."
Now, the EU's competition enforcer is reportedly drawing up a charge sheet outlining the alleged anti-competitive behavior, which could be sent to Apple next year.
[6]One-size-fits-all chargers? What a great idea! Of course Apple would hate it
[7]Sort-of Epic win as judge kills Apple ban on apps linking to outside payment systems
[8]They've only gone and done it – South Korea forces Apple, Google to allow alternative app store payment systems
[9]Apple's iPhone computer vision has the potential to preserve privacy but also break it completely
Apple's in-house payment systems are, or have been, in the cross-hairs of various nations, from Europe to America to Australia.
South Korea in August [10]passed legislation forcing Google and Apple to allow the use of third-party payment systems for app and in-app purchases, which Google decided [11]not to fight.
[12]
Apple also [13]settled an antitrust case over the monopolistic nature of its payment system in which it agreed to make some concessions in the United States. Similarly, as a [14]result of Epic's legal action against Apple, the iGiant said will allow apps to direct their users to alternative payment platforms.
Apple did not immediately respond to requests for comment. EU spokesperson Arianna Podesta told us: "We have no comment – this investigation is ongoing." ®
Get our [15]Tech Resources
[1] https://www.reuters.com/technology/exclusive-eu-antitrust-regulators-charge-apple-over-its-nfc-chip-tech-sources-2021-10-06/
[2] https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1075
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/09/23/eu_one_charger_plan/
[7] https://www.theregister.com/2021/09/10/apple_epic_judgement/
[8] https://www.theregister.com/2021/09/01/south_korea_anti_google_bill_passed/
[9] https://www.theregister.com/2021/08/16/ai_vision_apple/
[10] https://www.theregister.com/2021/09/01/south_korea_anti_google_bill_passed/
[11] https://www.theregister.com/2021/10/06/google_to_comply_with_south_korean_payment_law/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YV4cnCmquQrRvbJZCM-c1gAAANc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2021/08/27/apple_vs_cameron_et_al_settlement/
[14] https://www.theregister.com/2021/09/10/apple_epic_judgement/
[15] https://whitepapers.theregister.com/
Re: While this is a real concern, it is only half the problem
elsergiovolador
Worst of all some of them insist on collecting a PIN on the POS hardware for what should be pinless transactions via Apple Pay, ensuring that it is still possible to skim PIN codes, and ensuring that under the current law those charges will be hard or impossible to challenge.
Isn't that an EU regulation that requires a PIN for every 5 transactions or if you accumulate more than £125 whichever comes first?
Re: While this is a real concern, it is only half the problem
John Robson
Nope - I've made plenty of large transactions without PIN...
Re: While this is a real concern, it is only half the problem
elsergiovolador
Some banks implemented it better some worse. Could be also down to terminals - some will just decline the transaction and you have to try again with a pin, other will correctly ask for PIN and you will have plenty in between.
Cost of business
elsergiovolador
Who thinks the fine will be lower than the profit made off of the said chip?
skwdenyer
I’m probably unpopular, but I don’t see any foul here. Apple sell me a hardware + software product, tightly integrated. I suffer no loss from this lack of openness. I deliberately avoid Android because I don’t want this diversity & fragmentation.
Perhaps the EU could ask some consumers before claiming to act in their name?
While this is a real concern, it is only half the problem
The other half is the recalcitrance and incompetence on the POS terminal hardware side. Card terminals that can support contactless payments, but the installer pushed a configuration on them that blocks them. Systems using dark patterns that force you to press multiple buttons to select your preferred payment method, while the most expensive one is offered by default. Some want to force the transaction as credit/debit even through Apple Pay
Worst of all some of them insist on collecting a PIN on the POS hardware for what should be pinless transactions via Apple Pay, ensuring that it is still possible to skim PIN codes, and ensuring that under the current law those charges will be hard or impossible to challenge.
If you are going to address the phone/watch side of the problem, fix the other end at the same time while you are at it.