European Commission accepts Apple's 'tap and go' promises
(2024/07/11)
- Reference: 1720701247
- News link: https://www.theregister.co.uk/2024/07/11/european_commission_accepts_apples_tap/
- Source link:
Apple has avoided a potential hefty fine and an antitrust case in Europe after making concessions that include opening up access to iPhone hardware needed for "tap and go" applications.
An investigation was [1]launched into alleged anti-competitive practices around Apple Pay in 2022. One major concern was that Apple restricted access to Near-Field Communication (NFC) tech to its own Apple Pay solution at the expense of third-party alternatives.
During the investigation, the EC made the preliminary conclusion that Apple was indeed abusing its position to keep rivals at bay.
[2]
[3]Earlier this year , Apple announced some major changes to its mobile operating system, which included developer access to NFC hardware for contactless payments. It also offered a commitment to allow a third-party payment app to be set as default by users as well as "a monitoring mechanism and separate dispute settlement system to allow for independent review of Apple's decisions restricting access."
[4]
[5]
The EC market tested the suggestions and, after some consultation, Apple tweaked its proposal to make it easier for developers to prompt users to change their default payment app and removed the requirement for developers to have a license as a Payment Service Provider (PSP) or a binding agreement with a PSP to access the NFC input.
Other modifications to the proposal included shortening deadlines for resolving disputes.
[6]
The EC concluded that Apple's final commitments were good enough – at least in terms of addressing this particular area of competition concern – and has elected [7]to make them legally binding under EU antitrust rules.
According to the EC: "If the company concerned does not honor such commitments, the Commission may impose a fine of up to 10 percent of its total annual turnover, without having to find an infringement of EU antitrust rules, or a periodic penalty payment of 5 percent per day of its daily turnover for every day of non-compliance."
[8]China's Big Tech companies taught Asia to pay by scanning QR codes, but made a mess along the way
[9]Japan forces Apple and Google to allow third-party app stores and payments
[10]Here's a fun idea: Try to unlock and drive away in someone else's Tesla
[11]Live Nation CFO on Taylor Swift ticket chaos: Don't blame me, bots made me crazy
[12]EU-turn! Now Apple says it won't banish Home Screen web apps in Europe
Margrethe Vestager, Executive Vice-President in charge of competition policy, said of the decision: "It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone's ecosystem.
"From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from."
The commitments, which apply to developers and users in the European Economic Area (EEA) will remain in force for ten years.
[13]
The Register contacted Apple for its take on the decision. The company has yet to respond. ®
Get our [14]Tech Resources
[1] https://www.theregister.com/2022/05/02/eu_apple_suit_alleges_anticompetitive/
[2] 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=2ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2024/01/25/apple_eu_dma/
[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=44ZpABo45EXf40dCEk81AhhgAAAQM&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=33ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] 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=44ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://ec.europa.eu/commission/presscorner/detail/en/IP_24_3706
[8] https://www.theregister.com/2024/06/17/asia_qr_code_obsession/
[9] https://www.theregister.com/2024/06/13/japan_smartphone_software_law/
[10] https://www.theregister.com/2023/03/15/tesla_key_mixup/
[11] https://www.theregister.com/2023/01/24/taylor_swift_bots_blamed/
[12] https://www.theregister.com/2024/03/02/apple_reverses_pwa_decision/
[13] 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=33ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
An investigation was [1]launched into alleged anti-competitive practices around Apple Pay in 2022. One major concern was that Apple restricted access to Near-Field Communication (NFC) tech to its own Apple Pay solution at the expense of third-party alternatives.
During the investigation, the EC made the preliminary conclusion that Apple was indeed abusing its position to keep rivals at bay.
[2]
[3]Earlier this year , Apple announced some major changes to its mobile operating system, which included developer access to NFC hardware for contactless payments. It also offered a commitment to allow a third-party payment app to be set as default by users as well as "a monitoring mechanism and separate dispute settlement system to allow for independent review of Apple's decisions restricting access."
[4]
[5]
The EC market tested the suggestions and, after some consultation, Apple tweaked its proposal to make it easier for developers to prompt users to change their default payment app and removed the requirement for developers to have a license as a Payment Service Provider (PSP) or a binding agreement with a PSP to access the NFC input.
Other modifications to the proposal included shortening deadlines for resolving disputes.
[6]
The EC concluded that Apple's final commitments were good enough – at least in terms of addressing this particular area of competition concern – and has elected [7]to make them legally binding under EU antitrust rules.
According to the EC: "If the company concerned does not honor such commitments, the Commission may impose a fine of up to 10 percent of its total annual turnover, without having to find an infringement of EU antitrust rules, or a periodic penalty payment of 5 percent per day of its daily turnover for every day of non-compliance."
[8]China's Big Tech companies taught Asia to pay by scanning QR codes, but made a mess along the way
[9]Japan forces Apple and Google to allow third-party app stores and payments
[10]Here's a fun idea: Try to unlock and drive away in someone else's Tesla
[11]Live Nation CFO on Taylor Swift ticket chaos: Don't blame me, bots made me crazy
[12]EU-turn! Now Apple says it won't banish Home Screen web apps in Europe
Margrethe Vestager, Executive Vice-President in charge of competition policy, said of the decision: "It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone's ecosystem.
"From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from."
The commitments, which apply to developers and users in the European Economic Area (EEA) will remain in force for ten years.
[13]
The Register contacted Apple for its take on the decision. The company has yet to respond. ®
Get our [14]Tech Resources
[1] https://www.theregister.com/2022/05/02/eu_apple_suit_alleges_anticompetitive/
[2] 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=2ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2024/01/25/apple_eu_dma/
[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=44ZpABo45EXf40dCEk81AhhgAAAQM&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=33ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] 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=44ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://ec.europa.eu/commission/presscorner/detail/en/IP_24_3706
[8] https://www.theregister.com/2024/06/17/asia_qr_code_obsession/
[9] https://www.theregister.com/2024/06/13/japan_smartphone_software_law/
[10] https://www.theregister.com/2023/03/15/tesla_key_mixup/
[11] https://www.theregister.com/2023/01/24/taylor_swift_bots_blamed/
[12] https://www.theregister.com/2024/03/02/apple_reverses_pwa_decision/
[13] 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=33ZpABo45EXf40dCEk81AhhgAAAQM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
Ok….
Rich 2
Let me guess - Apple will indeed open up their card tappy payment thingy
…and then charge all the other suppliers 15% of all transactions to use it
I would put a joke icon up but I’ll wait to see if it actually is a joke or not
Just wait...
The usual suspects will be lining up to go after this deal mostly, without looking at the details. Targeting Apple (and Microsoft, Google and Oracle) is easy money.