Wednesday October 05, 2022

EU preliminary ruling declares that Apple Pay is anticompetitive

The European Union has filed an antitrust complaint against Apple for excluding rivals from its Apple Pay mobile payments system. Apple was sent a formal “Statement Of Objections” by the EU. It stated that Apple had abused its dominant position in mobile wallets for iOS. “The Commission objects to Apple’s decision to block mobile wallet app developers from accessing the required hardware and software (‘NFC Input’) on its devices, to its benefit, Apple Pay,” reads part of the decision. “Today’s Statement of Objections only addresses the access to NFC input by third party developers of mobile wallets for payment in stores.”
This is the first, formal stage in antitrust proceedings against Apple. The company will have the opportunity to respond to the Commission’s list of objections. The EU points out that the EU does not consider the outcome of an investigation “prejudiced” by the sending of a Statement of Objections.
This ruling follows allegations last year that Apple unfairly penalized rival music streaming services. The EU can impose fines up to 10% of Apple’s global revenues ($36 billion) and force the company to change its business practices. However, in practice, the amount of fines that Apple will face for appealing to the charges is likely to be much lower.
The Commission’s preliminary opinion against Apple shows that the EU is leading the charge in efforts to limit the power of Big Tech. The bloc has passed two major legislative measures to counter the negative effects of digital giants in the past weeks. These include the Digital Services Act (DSA), which requires companies to have tighter control over harmful content on their platforms; as well as the Digital Markets Act, (DMA), which is designed to level the playing field and allow smaller companies to compete against the largest corporations.
Apple objected to many provisions of the EU, especially those that loosen Apple’s control over the App Store (from where Apple receives significant revenue).

Leave a Reply

Your email address will not be published.

Back to Top
%d bloggers like this: