Apple avoids EU fine with iPhone changes

Third-party Apple Pay alternatives are welcome, Apple promises

Apple has avoided a potential fine and antitrust case by the European Commission, by tweaking its iPhone settings to make it easier for third-party developers to create viable alternatives to Apple Pay.

This includes allowing access by third-parties to the iPhone's Near-Field Communication (NFC) functionality for contactless payments, and allowing third party payment apps to be set as the default choice by uses.

Apple made initial moves in this direction earlier this year, altering iOS to allow third-party access to NFC. Following consultations with the EC, it has made further changes to make user choice more straightforward and reducing some of the restrictions it had placed on third-party app developers. It also made additional commitments around easing the dispute resolution process.

The EC, which has taken Apple to task numerous times on antitrust grounds, with many investigations ongoing, has indicated that it is satisfied that, in this aspect at least, Apple's commitments meet its requirements.

"The Commission concluded that Apple's final commitments would address its competition concerns over Apple's restriction of third-party mobile wallet developers' access to NFC payments in stores for EEA iOS users," the EC said in a statement. "It therefore decided to make them legally binding on Apple." The commitments will remain in force for 10 years. Should Apple be found to be backsliding in this time a fine of 5% of daily turnover per day could still apply.

"Apple has committed to allow rivals to access the 'tap and go' technology of iPhones, said Margrethe Vestager, executive vice-president in charge of competition policy in a statement.

"It opens up competition in this crucial sector, by preventing Apple from excluding other mobile wallets from the iPhone's ecosystem. From now on, competitors will be able to effectively compete with Apple Pay for mobile payments with the iPhone in shops. So consumers will have a wider range of safe and innovative mobile wallets to choose from."