TapTechNews July 11th news, the European Union announced today that it has accepted Apple's commitment regarding contactless payment and made Apple's commitment legally binding according to the EU's antitrust rules.
The European Commission said that ApplePay is the only mobile wallet that can access the NFC hardware and software on the iOS system, because Apple does not provide this function to third-party mobile wallet developers, which violates Article 102 of the Treaty on the Functioning of the European Union (TFEU) and abuses its dominant market position.
Apple then promised to enable Host Card Emulation mode (HCE, Host Card Emulation mode) of NFC access, allowing for the secure storage of payment credentials and the completion of transactions using NFC without relying on the secure element within the device. This will allow third-party mobile wallet providers free access to NFC input on iOS devices without the need to use ApplePay or AppleWallet.
Apple will implement fair, objective, transparent and non-discriminatory procedures and eligibility criteria for third-party mobile wallet app developers to grant NFC access.
The European Union conducted a market test on Apple's commitment and consulted all relevant third parties. Based on the results of this market test, Apple modified its original proposal and promised:
Expand the use of HCE payment applications to initiate payments on terminals certified in other industries
Allow the combination of HCE payment functions with other NFC functions or use cases
Remove the requirement that developers must have a payment service provider (PSP) license or enter into a binding agreement with a PSP to access NFC input
Open NFC access for pre-built payment applications for third-party mobile wallet providers to developers
Update the HCE architecture to conform to the evolving industry standards used by ApplePay (continue to update the standards even if these standards are no longer implemented by ApplePay under certain conditions)
Enable developers to prompt users to change their default payment application and redirect users to the default NFC settings page
Comply with the same industry standard specifications as HCE payment app developers and protect confidential information obtained during the audit process
Shorten the time limit for resolving disputed issues and provide more independence and procedural safeguards for the supervisory trustee
According to TapTechNews' previous report, if Apple refuses to settle, then the European Union can fine according to 10% of the global annual turnover. Apple's revenue in 2023 is 383 billion US dollars. If calculated according to a 10% fine, this means that the company will receive a nearly 40 billion US dollar fine.