- Apple has offered to give rivals access to its contactless payment and mobile wallet technology in an effort to appease antitrust regulators in Europe.
- In 2022, the European Commission found that since Apple Pay is the only option available to iPhone users, it may restrict competition in the market.
- The Commission said Friday that it is looking for feedback on the solutions Apple has proposed.
Apple has offered to give rivals the ability to access and interoperate with its contactless payment tech in an effort to appease antitrust regulators in Europe.
Apple Pay, the company's mobile wallet feature, allows users to make purchases by simply tapping their iPhones, which run on Apple's operating system called iOS. Since Apple controls this operating system exclusively, third-party mobile wallet developers' access to its payment technology has previously been restricted.
In 2022, the European Commission, the executive body of the EU, found that since Apple Pay is the only option available to iPhone users, "such exclusionary conduct may restrict competition in the market for mobile wallets on iOS devices." As a result, Apple proposed a series of commitments to address the commission's concerns.
Get top local stories in San Diego delivered to you every morning. Sign up for NBC San Diego's News Headlines newsletter.
Apple said it will allow third-party developers to gain access to the mobile payment technology, provide new features for users like defaulting to preferred payment apps and apply "non-discriminatory eligibility criteria" for rival developers.
"Through our ongoing discussions with the European Commission, we have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet," an Apple spokesperson told CNBC in a statement.
The commission said Friday that the changes would remain in place for 10 years. It is looking for feedback on the solutions Apple has proposed.
Money Report
If Apple's commitments assuage European regulators' competition concerns, the commission will adopt them and legally require Apple to implement the changes. If the company fails to comply, it could face a fine of up to 10% of its total revenue.
Apple is also facing pressure from antitrust regulators in the U.S., as the Department of Justice is reportedly shoring up a case against the company, according to a report from Bloomberg. The DOJ's case reportedly centers around software and hardware limitations on iPads and iPhones that restrict competition.
The DOJ could reportedly file the suit against Apple within first quarter, the report said.
Shares of Apple closed up more than 1% Friday.
Don't miss these stories from CNBC PRO:
- Tesla versus BYD: Analysts prefer one of them — giving it up to over 70% upside
- Goldman says small caps to beat large caps this year. 10 cheap smaller stocks to buy
- DoubleLine's Gundlach sees 'very painful' economic downturn, S&P 500 may be forming 'double top'
- 'One of the best valuations for AI': Buy the dip in this Big Tech stock, strategist says
