Because the EU Antitrust accuses Apple Pay of abuse of a dominant position
According to the European Commission, Apple has limited competitors' access to the technology needed to develop rival Apple Pay payment services. All the details and locations of the parts
Today the European Commission officially informed Apple about a possible abuse of a dominant position in the sector of mobile payment systems on iOS devices (the operating system developed by the company and present, for example, on iPhones).
THE EUROPEAN COMMISSION VERSION
In a statement, European Competition Commissioner Margrethe Vestager said she had "indications that Apple has restricted third party access to the key technology needed to develop rival mobile wallet solutions on Apple devices." The reference is to the contactless payment tool created by the company, Apple Pay.
THE POSSIBLE CONSEQUENCES FOR APPLE
The communication could result for Apple in a fine of up to 10 percent of its global turnover (36.6 billion dollars in 2021) and in the obligation to open its system to competition.
Meanwhile, Apple's shares on the Frankfurt stock exchange lost 0.7 percent.
This is the second accusation by the European Union against Apple on competition issues, after last year the regulatory authorities in Brussels – following a complaint filed by the Swedish company Spotify – had accused the American company of standing distorting competition in the on-demand music streaming market.
THE ANSWER OF APPLE
According to the Commission, Apple's anti-competitive practices relating to Apple Pay date back to 2015, when the tool was made available.
The company responded by stating that "Apple Pay is just one of the many options available to European consumers to make payments and has ensured equal access to NFC [proximity communication, a wireless transmission technology, ed ], setting standards at the level sector for privacy and security ".
Apple claims that the "closure" of its digital ecosystem represents a guarantee of security. Vestager rejected this argument, however, arguing that “so far our investigation has revealed no evidence indicating such a high security risk. On the contrary, the evidence in our file indicates that Apple's conduct cannot be justified by security concerns ”.
THE NUMBERS OF APPLE PAY
Apple Pay is used by over 2,500 banks in Europe. As Reuters explains, the NFC chip present in the company's devices, such as iPhones, iPads and Apple Watches, allows tap-and-go payments: simply place the device on the terminal to make the payment, smoothly.
WHAT HAPPENS NOW
Apple may request a closed-door hearing with European authorities to defend its position or send a written response. The Commission's final decision could take a year or more.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/apple-pay-abuso-posizione-dominante/ on Mon, 02 May 2022 13:53:53 +0000.