KEY TAKEAWAYS
- Apple has settled its “tap and go” payments probe with the European Commission (EC), opening its mobile wallet to rivals for free.
- The EC said it has accepted commitments from Apple to allow rivals free access to the company’s payments technology.
- The commitments, which will help Apple avoid antitrust fines, will remain for 10 years.
Apple (AAPL) has settled its “tap and go” payments probe with the European Commission (EC), the European Union (EU)’s enforcement arm, opening its mobile wallet to rivals for free in a bid to avoid antitrust fines.
The Commission said Thursday that it has accepted commitments from Apple to allow rivals access to the company’s payments technology, following its long-running investigation into Apple Pay.
“Apple’s refusal excluded Apple Pay’s rivals from the market and led to less innovation and choice for iPhone mobile wallets users,” it said.
Under the settlement, iPhone users in Europe will be able to use third-party mobile wallet and payment services when they make purchases. The commitments will remain for 10 years throughout the European Economic Area (EEA).
The EC said it could impose a fine of up to 10% of Apple’s total annual turnover if the iPhone maker doesn’t honor its commitments to the bloc.
Apple Faces Other EU Antitrust Allegations
Apple’s travails with European antitrust regulators aren’t over, however.
Last month, Apple’s was preliminarily found in violation of Europe’s Digital Markets Act (DMA) because users allegedly are not able to be “steered” away from the App Store to make payments and find better offers as easily as they should be.
Apple shares were little changed in premarket trading but have risen about 20% this year.