A PYMNTS Company

EU Could Force Apple To Share Payments Tech With Competitors

 |  September 18, 2020

The European Union (EU) could pass new laws that would make it mandatory for Apple to share the payments technology in its iPhones, according to a report from Bloomberg.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The new laws would prevent developers from restricting access to their near-field communication (NFC) technology embedded in the phones or other devices, like smartwatches.

    Documents obtained by Bloomberg mention NFC, which is used to handle wireless signals that let users make payments on their devices at store terminals instead of on cards.

    Apple isn’t mentioned by name in the EU report, but currently, iPhone and Apple Watch users have to use Apple Pay to make NFC payments, and banks and other competitors want that functionality, too, saying Apple won’t give them the technology, Bloomberg reported.

    Apple didn’t respond to requests for comment to Bloomberg, but its argument in the past for restricting the chip technology to its own apps is that releasing it to a broader audience could heighten the risk of fraud.

    In the report, which is slated to be revealed next week, the EU acknowledges the risks and says it would take precautions to that effect, spelling out exactly when it would be acceptable to share the data. Any EU legislation would also come on the heels of the German rules from earlier this year making it imperative for operators of digital money infrastructure to allow access to competitors for reasonable prices.

    Full Content: PYMNTS

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.