Apple to let rivals use tap-and-go payment, staves off EU antitrust fine

Apple (NASDAQ) will open its tap-and-go mobile payments system to competitors, according to an announcement by EU antitrust regulators on Thursday. This decision concludes a four-year-long investigation that could have resulted in a substantial fine for the iPhone maker.

Apple’s move to settle the EU antitrust probe is notable, as the company has typically resisted the EU competition authority’s scrutiny of its business practices. Currently, Apple is facing three investigations under the Digital Markets Act (DMA) related to its business operations.

The European Commission, which serves as the EU’s antitrust authority, stated that Apple’s commitment will be valid for 10 years. Currently, over 3,000 banks and issuers in Europe offer Apple Pay.

“Competitors will now be able to effectively compete with Apple Pay for mobile payments with the iPhone in stores. This means consumers will have a broader selection of safe and innovative mobile wallets,” said EU antitrust chief Margrethe Vestager.

Apple’s near-field communication (NFC) technology, which facilitates contactless payments with mobile wallets, will now be accessible to developers, allowing them to create payment apps for competing mobile wallet providers.

Apple stated that this offer will enable European developers to integrate tap-and-go payments for car keys, closed loop transit, corporate badges, home keys, hotel keys, merchant loyalty/rewards, and event tickets within their iOS apps.

Two years ago, the EU competition authority charged Apple with stifling competition for its Apple Pay mobile wallet by restricting rival app developers from accessing its NFC technology.

In January, Apple proposed a settlement to avoid a fine and a formal finding of wrongdoing.

In March, Apple was fined 1.84 billion euros, its first EU antitrust penalty, for hindering competition from Spotify (NYSE) and other music streaming rivals through restrictions on its App Store.