Apple proposes opening up its iPhone NFC payment technology to third-party developers in Europe, allowing direct Apple Pay rivals to be on the iPhone.
Apple has historically blocked the use of its NFC chip in the iPhone and Apple Watch by third-party developers, limiting it to its own Apple Pay payment solution. In a statement to Reuters, Apple said:
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.
The concession comes as Apple works to address antitrust charges levied by the European Commission, which accuses the company of limiting competition by restricting third-party access to NFC capabilities on iOS devices.
Developers of payment, banking, and digital wallet applications in the European Economic Area (EEA) will be allowed to integrate their own solutions with Apple’s NFC chips. This would allow consumers to use NFC-enabled apps from other providers, alongside or instead of Apple Pay.
Apple’s decision could foreshadow making similar changes in its operations in other areas of the world in the future as antitrust pressure on Apple continues to increase.
As part of the review process, the European Commission is currently seeking feedback from rival companies and customers on Apple’s proposed concessions. If approved, the implementation of Apple’s proposed commitments will be monitored by a trustee reporting to the Commission.
