Apple Opens NFC to Third-Party Wallets in EU, Ending Exclusive Access

Apple will allow third-party mobile wallet and payment providers to utilize the iPhone's NFC capabilities as part of concessions to the European Commission's antitrust inquiry, the commission stated today.

Apple Vows to iPhone NFC Payments to Third-Party Suppliers Following EU Inquiry

The Commission is currently soliciting opinions on the promises that would end Apple Pay and Apple Wallet's exclusive access to the iPhone's NFC payment functions. It's the most recent development in the nearly four-year-long inquiry.

The new obligations come a little over a year and a half after the Commission accused Apple of violating EU law by restricting competition in the mobile payments market through its iOS rules. “The Commission takes issue with the decision by Apple to prevent mobile wallets app developers, from accessing the necessary hardware and software (‘NFC input’) on its devices, to the benefit of its own solution, Apple Pay,” the regulator stated.

Although Apple allows third-party app developers to use the iPhone's NFC functionality to scan electronic tags, it restricts NFC payments to its own applications. In December, Reuters was the first to disclose that Apple would make its tap-to-pay hardware available to competitors.

“Through our ongoing discussions with the European Commission, we have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet,” Apple told the Wall Street Journal.

Apple's NFC Payment Proposals: EU Scrutiny and Potential Global Implications

There is no mention of any commitments affecting iPhone users or third-party wallet developers outside of the EU, but the Commission's press release does state that Apple's proposals would allow people with an Apple ID registered in the European Economic Area to make NFC payments using third-party apps outside of the bloc.

The proposed agreements would be in force for ten years, and failure to comply might result in a fine of up to ten percent of Apple's global annual turnover. The request for input on the promises comes one week after the Commission's antitrust chief, Margrethe Vestager, met with Apple CEO Tim Cook in California.

Apple Pay is just one of the Apple services targeted by the EU's antitrust probes; the Commission has also sided with Spotify and criticized App Store rules that prohibit developers from advertising app subscriptions outside of Apple's platform. Bloomberg has reported that a final verdict, as well as potential fines and bans on the practice, are likely this year.

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