The EU believes Apple is likely to favor its own mobile wallet – there could be a hefty fine in the offing

Brussels

The European Commission has today sent to an American technology giant Apple statement of objections. In it, the Commission provisionally considers that Apple has abused its dominant position.

This is Apple’s payment system, Apple Pay. According to the Commission’s preliminary view, Apple has restricted competition in the mobile wallet market. Restricting competition is illegal under EU competition rules.

EU Competition Commissioner Margrethe Vestagerin According to the Commission, the Commission’s investigation revealed indications that Apple had favored its own Apple Pay service.

The company has restricted third-party access to key technology needed to develop competing mobile wallets for Apple devices.

Apple Pay is the only mobile wallet that can use an NFC connection on Apple’s iOS operating system. Apple does not provide access to competing app developers.

NFC (near-field communication) refers to short-range wireless technology used in, for example, local payment, travel cards, and access control.

Apple Pay is Apple’s proprietary mobile wallet solution for iPhone and iPad. It is used for mobile payments in stone-foot shops and online stores.

Apple will have access to the investigation material

The Commission launched its Apple Pay investigation in June 2020. Apple will then have the opportunity to inspect the Commission’s investigation file, respond in writing and request an oral hearing.

The duration of the competition investigation varies and there is no time limit for its completion.

Vestager has not yet wanted to assess how much fines Apple could receive if it is ultimately found to have abused its dominant position.

Infringements of EU competition rules can result in a fine of up to 10% of a company’s annual worldwide turnover.

Apple’s revenue last year was $ 365.8 billion.

By Editor

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