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After four years of interaction, The European Union and Apple have finally reached an agreement The European Commission announced that Apple has made “legally binding” commitments to provide developers with Near Field Communication (NFC) technology, which is used in Tap and Go technology and allows access to iOS features such as Face ID authentication and double-click launch. The agreement will allow Apple to avoid antitrust fines of up to 10% of its annual global revenue, or about $40 billion.
Apple also agreed to conditions such as allowing users to make third-party wallets their default app. “Preventing Apple from excluding other mobile wallets from the iPhone ecosystem opens up competition in this important area,” Margrethe Vestage, the EU’s executive vice-president for competition policy, said in a statement. “Going forward, competitors will be able to compete effectively with Apple Pay for in-store mobile payments with iPhone, giving consumers more choice between secure and innovative mobile wallets.” The commitments are binding for 10 years, and an independent monitor will ensure Apple complies across the European Economic Area (EEA).
The European Commission launched an investigation into Apple in 2020, alleging that the company was restricting access to necessary technology for rival mobile wallet developers. Two years later, the regulator issued a preliminary finding that Apple had “abuse[ed]its dominant position.”
Now, in early 2024, Apple has finally proposed to open up its NFC technology and have it reported to an independent review body. The conditions were publishedThe European Commission also invited Apple’s competitors and other interested parties to comment. The final agreement between the European Commission and Apple is the result of these discussions.
The tech giant could be facing tens of billions of dollars in damages in a separate lawsuit after the European Commission issued a preliminary opinion that Apple violated the Digital Markets Act (DMA). The new law went into effect in March, and the European Commission immediately began investigating whether Apple hindered developers from telling users that they could get their services cheaper elsewhere. Apple currently takes a 30% commission on purchases made through the App Store. The European Commission is expected to issue a final decision on the case by March 2025.